Company Number: 12629829

Analysis Date: 2025-07-29 13:14 UTC

Financial Health Assessment: OGIS LOGISTICS LIMITED (as of 31 May 2024)

---

1. Financial Health Score: Grade D

Explanation:
OGIS LOGISTICS LIMITED is showing persistent financial distress indicated by sustained negative net current assets and shareholders' funds over the past five years. The company’s liabilities exceed its assets, reflecting a balance sheet "symptom" of financial strain. While the company remains active and compliant with filings, the financial "vital signs" suggest it is operating under challenging conditions with limited financial cushion.

---

2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Current Liabilities	25,983	Debts due within one year; relatively small but significant given the company size.
Net Current Assets	-25,983	Negative working capital indicates cash flow pressure and inability to cover short-term debts from current assets.
Total Assets Less Current Liabilities	-25,983	Company’s assets do not cover its liabilities — a sign of insolvency risk if this persists.
Shareholders' Funds	-25,983	Negative equity reflects accumulated losses and possibly ongoing losses, eroding owner investment.
Share Capital	1.00	Minimal initial capital invested; low buffer for losses.
Filing Status	Up to date	No overdue filings; good administrative compliance.
Company Age	4 years	Relatively young company, still in early growth or development phase.

Interpretation:
The company’s "vital signs" resemble a patient with chronic illness rather than acute distress. Negative net current assets mean the company may struggle to pay bills on time without external financing. Negative shareholders' funds imply the company has accumulated losses exceeding its capital, limiting financial flexibility. The stable but negative trend over five years suggests no significant improvement.

---

3. Diagnosis

OGIS LOGISTICS LIMITED shows symptoms of financial distress primarily due to persistent negative working capital and shareholders’ funds. This condition indicates that the company’s liabilities have consistently outweighed its assets, which can signal potential solvency issues if not addressed.

• The absence of fixed assets and no reported employees may imply limited operational scale or reliance on external assets and contractors.
• The company operates in cargo handling for water transport — an industry that can have high fixed costs and capital requirements, which may not be reflected in the accounts if assets are leased or outsourced.
• Lack of profit and loss data restricts a full profitability analysis but the persistent negative equity suggests ongoing losses or insufficient profits.
• Compliance with filing deadlines is a positive sign, indicating sound governance in terms of regulatory obligations.

Overall, the company is in a financially fragile state but not yet in immediate crisis (e.g., liquidation or administration), akin to a patient with a chronic condition that requires careful management to avoid deterioration.

---

4. Recommendations

To improve the financial wellness of OGIS LOGISTICS LIMITED, the following steps are advised:

1. Improve Liquidity and Working Capital Management:

   • Explore options to increase current assets (e.g., improve cash inflows or reduce stock/debtors days).
   • Negotiate better payment terms with creditors or seek short-term financing to smooth cash flow.

2. Capital Injection or Debt Restructuring:

   • Consider raising additional equity capital to strengthen the balance sheet and reduce negative shareholders' funds.
   • Explore refinancing or restructuring existing short-term debts to more manageable terms.

3. Operational Review and Cost Control:

   • Review operational efficiency and cost base, focusing on areas to reduce expenses and move toward profitability.
   • Assess business model viability and market positioning in the cargo handling sector.

4. Financial Reporting and Transparency:

   • Provide comprehensive profit and loss accounts to identify loss-making activities and areas for improvement.
   • Regular financial monitoring to detect early warning signs and implement corrective measures promptly.

5. Seek Professional Advice:

   • Engage financial and business advisors to develop a turnaround plan.
   • Consider mentoring or support from industry bodies or government programmes for logistics SMEs.

---