OLD OAK ENGINEERING LTD

Executive Summary

OLD OAK ENGINEERING LTD shows a solid financial footing for a micro-entity, with strong liquidity and growing net assets indicating healthy operations. The company’s financial health is stable, but monitoring long-term creditors and expanding reporting transparency will support sustained growth and resilience.

OLD OAK ENGINEERING LTD - Analysis Report

Company Number: 13835798

Analysis Date: 2025-07-20 13:32 UTC

Financial Health Assessment: OLD OAK ENGINEERING LTD

---

1. Financial Health Score: B

Explanation:
OLD OAK ENGINEERING LTD demonstrates a solid financial foundation for a micro-entity in its early years. The company shows strong net asset growth and healthy working capital, indicating good short-term liquidity. However, the presence of a creditor balance due after more than one year and the very short recent accounting period (2 months) suggest some caution. The overall financial health is sound but still developing, hence a grade of B is appropriate.

---

2. Key Vital Signs

Vital Sign	Value (2024)	Interpretation
Fixed Assets	£13,000	Investment in long-term assets indicates acquisition of equipment or infrastructure, showing growth intent.
Current Assets	£77,640	Healthy current assets provide a cushion for meeting short-term obligations.
Current Liabilities	£10,000	Low current liabilities relative to assets indicates strong liquidity.
Net Current Assets	£67,640	Positive working capital ("healthy cash flow") suggests the company can comfortably cover its short-term debts.
Total Net Assets	£80,640	The company’s equity base is increasing, reflecting retained earnings or capital injections.
Share Capital	£100	Minimal share capital typical for micro entities, ownership structure straightforward.
Creditors > 1 Year	£10,000	Presence of long-term debt requires monitoring but is manageable at current levels.
Average Employees	2	Small workforce consistent with micro-entity status.

---

3. Diagnosis

OLD OAK ENGINEERING LTD is exhibiting the financial "vital signs" of a young but growing engineering business. The company’s balance sheet shows steadily increasing net assets and working capital, signaling good financial resilience and ability to meet obligations without distress. The increase in fixed assets suggests investment to support operations or growth.

The longstanding director, Mr. Simon Osiecki, holds full control, which typically aids swift decision-making but could also concentrate risk. The company has no overdue filings and is up to date with compliance, indicating good governance.

The short reporting period (2 months for the latest accounts) is unusual but may reflect a recent change in accounting reference date or a new financial year setup. This limits trend analysis but the available data shows consistent financial improvement.

The £10,000 creditor balance due after one year represents a mild long-term liability "stress symptom," but it remains small relative to assets and equity. The company’s liquidity ("healthy cash flow") and positive net current assets are reassuring, indicating no immediate cash flow distress.

---

4. Recommendations

• Continue Monitoring Long-Term Debt: Keep creditor balances under review to ensure repayment schedules remain manageable and do not strain cash flows.
• Expand Financial Reporting Period: Ensure future accounts cover full 12-month periods for clearer trend analysis and stronger stakeholder confidence.
• Build Cash Reserves: Maintain or increase cash and equivalents to strengthen liquidity buffers against unforeseen expenses or market downturns.
• Consider Share Capital Increase: Although not urgent, increasing share capital could improve financial flexibility and support future growth or investment.
• Governance and Succession Planning: Given control concentration, consider formalizing governance structures or planning for leadership continuity to reduce operational risk.
• Business Development: Leverage engineering expertise to grow revenue streams, supported by stable asset base and liquidity.

---