Company Number: 14062843

Analysis Date: 2025-07-19 11:53 UTC

1. Risk Rating: LOW to MEDIUM
   OJ Industries Ltd demonstrates a positive net asset position and growing working capital over the last two years, indicating solvency and moderate liquidity. However, the company is relatively young (incorporated 2022) with limited financial history and no reported employees, which introduces some operational sustainability uncertainty.

2. Key Concerns:

• Limited Operating History: Being a start-up with only two full years of accounts, the company lacks an extensive track record to conclusively assess financial and operational stability.
• Modest Cash Reserves: Cash at bank is relatively low (£12,224 as of 2024) compared to current liabilities (£79,780), which may present liquidity constraints if receivables are delayed or inventory turnover slows.
• No Employees: The absence of staff might imply heavy reliance on directors or subcontractors, raising concerns about scalability and continuity of operations.

3. Positive Indicators:

• Improving Financial Position: Net current assets increased from £5,922 in 2023 to £14,720 in 2024 and net assets more than doubled, reflecting growth in retained earnings and business scale.
• Up-to-date Filings: All statutory filings including accounts and confirmation statements are current with no overdue notices or compliance issues, indicating sound governance practices.
• Clear Ownership and Control: Two directors/shareholders each holding 25-50% shares and voting rights, with no director disqualifications or governance concerns noted, supporting stable management oversight.

4. Due Diligence Notes:

• Review the company’s detailed income statement and cash flow information (not filed publicly) to assess profitability trends and cash generation capability.
• Confirm the nature and turnover rate of stock (£60,000) to evaluate potential inventory risk or obsolescence.
• Investigate customer concentration and debtor collection periods, given debtors of £22,276 relative to cash holdings, to identify liquidity risks.
• Ascertain business model sustainability given no staff employed and reliance on directors or external resources.
• Verify the company’s VAT registration and tax compliance status, including any deferred tax liabilities not disclosed.
• Understand the directors' plans for growth and capital investment given limited fixed assets (£2,204 net book value) and very low share capital (£2).