OKTAGON LTD

Executive Summary

Oktagon Ltd presents a stable financial profile with improving net assets and positive working capital typical for a micro-entity in the construction sector. The company shows no signs of distress and is managed under clear director control, supporting an approval for credit facilities. Continued monitoring of profitability and cash flow as the business grows is recommended to ensure ongoing creditworthiness.

OKTAGON LTD - Analysis Report

Company Number: 14456944

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

1. Credit Opinion: APPROVE

Oktagon Ltd is a micro-entity incorporated recently in late 2022, operating in the construction of domestic buildings sector. The company shows positive net assets that increased from £20,585 in 2023 to £29,824 in 2024, indicating improving financial strength in its early years. There are no indications of financial distress, overdue filings, or management concerns. The director has full control, implying clear accountability. Given the consistent net current asset position and no negative working capital, Oktagon Ltd demonstrates the capacity to meet its short-term obligations and maintain business continuity. Therefore, it is suitable for standard credit facilities with no immediate concerns.

2. Financial Strength:

The balance sheet reflects a modest but improving net asset base typical for a micro-entity in its infancy. Current assets increased from £14,520 to £23,588, while current liabilities remained stable around £6,200, resulting in net current assets growing to nearly £30k in 2024. The company’s shareholders’ funds mirror the net asset values, showing no long-term liabilities or debt burden. The absence of fixed assets data suggests a lean asset base, common in service or contract-based construction firms at start-up stage. Overall, the financial position is sound with a positive equity buffer and no signs of over-leverage.

3. Cash Flow Assessment:

Working capital is positive and has improved year-on-year, with net current assets rising by approximately 45%. Current liabilities are modest and well covered by current assets, indicating good liquidity and an ability to fund day-to-day operations without strain. The company employs an average of 2 employees, suggesting controlled overhead costs. However, the absence of detailed profit and loss data limits assessment of operating cash flow trends. Given the stable and positive working capital, there is no immediate liquidity concern, but monitoring operating cash generation would be prudent.

4. Monitoring Points:

• Monitor growth in turnover and profitability as accounts become available to confirm sustainable cash flow generation.
• Watch for any significant increase in liabilities or delays in statutory filings that could indicate emerging financial pressure.
• Keep track of director and shareholder changes that might affect governance or control.
• Observe the company’s ability to scale assets and workforce in line with business growth to maintain financial stability.
• Review any future credit applications to reassess risk as the company matures and takes on larger commitments.