OH RENDERING LTD

Executive Summary

OH Rendering Ltd is a start-up company with a very limited financial track record and a weak balance sheet characterized by negative working capital and minimal equity. Its current liquidity position raises concerns about its ability to meet short-term obligations. Without significant improvements in cash flow or capital support, the company is not suitable for credit extension at this stage.

OH RENDERING LTD - Analysis Report

Company Number: 14785703

Analysis Date: 2025-07-20 12:42 UTC

1. Credit Opinion: DECLINE
   OH Rendering Ltd is a recently incorporated small private limited company with no significant trading history beyond its first year. The financial statements reveal limited net assets (£158) and a negative working capital position (net current liabilities of £10,867). Current liabilities exceed current assets by a substantial margin, indicating poor short-term liquidity and an inability to meet immediate obligations without additional financing. The company operates with a single director and shareholder, which concentrates control but also limits managerial depth and resilience. Given the very early stage of the business, minimal capital base, and current weak liquidity, the company would not presently be considered creditworthy for lending or significant trade credit without substantial guarantees or collateral.

2. Financial Strength:
   The balance sheet shows fixed assets of £11,025 (mainly motor vehicles) and current assets of £7,498 (all debtors). Current liabilities total £18,365, resulting in negative net current assets of £10,867. The total net assets stand at a nominal £158, reflecting a very thin equity base. The company’s capital is minimal (called-up share capital of £1), and accumulated retained earnings are just £157. This fragile equity position and negative working capital highlight a weak financial foundation, limiting the company’s ability to absorb financial shocks or losses.

3. Cash Flow Assessment:
   The company’s cash flow position appears constrained. Current assets are entirely debtors, implying cash has not yet been realized from sales or services. Without cash or other liquid assets, the company may struggle to settle current liabilities in the short term. Negative working capital indicates reliance on additional funding, whether from owner injections or external sources, to maintain operations. The absence of reported cash balances or liquid reserves is a credit concern, as is the absence of multiple employees or diversified income streams.

4. Monitoring Points:

• Improvement in liquidity ratios and working capital position in subsequent accounts.
• Evidence of increasing turnover and cash inflows to reduce debtor balances and build cash reserves.
• Timely payment of creditors and tax obligations to avoid penalties or enforcement actions.
• Any capital injections or new financing arrangements strengthening the equity base.
• Business development progress and diversification beyond sole director operations to reduce operational risk.