Company Number: 13481279

Analysis Date: 2025-07-29 16:54 UTC

1. Credit Opinion: DECLINE
   OLD OAK COMMON PROPERTY LTD shows significant financial stress, evidenced by persistent negative net assets and shareholders' funds (£-194k in 2024, worsening from £-63k in 2023). The company is heavily leveraged with bank loans secured against investment property (£1.61M), and current liabilities far exceed current assets, resulting in a negative working capital position (£-580k). The director's loan account within current liabilities has increased substantially, indicating reliance on director funding to meet short-term obligations. The absence of profit generation and worsening net liability position raise concerns on the company’s ability to service new or additional debt without external support or recapitalization.

2. Financial Strength:
   The balance sheet is dominated by a single investment property valued at circa £2.0M, which remains unchanged in fair value year-over-year, indicating no capital appreciation or impairment. However, the company’s liabilities exceed total assets, leading to net liabilities of nearly £194k. Current liabilities are very high relative to minimal current assets and cash balances, resulting in a substantial working capital deficit. The company’s equity base is eroded, reflecting accumulated losses. The substantial secured bank loan limits further borrowing capacity. Overall, the financial structure is weak and highly leveraged with minimal liquidity buffers.

3. Cash Flow Assessment:
   Cash on hand is minimal (£2,090), insufficient to cover even a small fraction of current liabilities (£1.61M). Negative net current assets highlight ongoing liquidity issues. The large director’s loan account within current liabilities suggests short-term funding is dependent on related party advances rather than operational cash flow. There is no evidence of operational cash inflows or profit generation to support debt servicing or working capital needs. The company’s liquidity position is precarious and cash flow generation capability appears very limited.

4. Monitoring Points:

• Trends in net asset value and shareholders’ funds for improvement or further deterioration.
• Changes in director’s loan account and current liabilities to assess short-term funding risk.
• Cash flow statements or management accounts to monitor operational cash generation.
• Status of secured bank loan agreement and compliance with covenants.
• Any capital injections or restructuring plans to restore balance sheet health.