Company Number: 12409624

Analysis Date: 2025-07-20 18:28 UTC

1. Credit Opinion: DECLINE
   Oleria Limited exhibits persistent and worsening net liabilities over recent years, with net assets declining from a positive £748 in 2021 to a negative £7,690 in 2024. Despite a slight improvement in cash balances recently, the company’s current liabilities exceed current assets by a significant margin (£13,804 negative net working capital in 2024). The presence of a director’s loan account liability and bank overdraft further strains liquidity. The company’s inability to generate sufficient working capital and its negative equity position indicate a weak financial structure unlikely to support additional credit without substantial improvement or guarantees.

2. Financial Strength:
   The balance sheet shows a declining trend in net assets from positive to increasingly negative, reflecting accumulated losses in the profit and loss reserve. Fixed assets are minimal and depreciating, with no indication of significant investment. Current liabilities have increased, including bank loans and director’s loans, indicating reliance on external and internal financing to sustain operations. Negative shareholders' funds signal insolvency by accounting standards, reducing creditor protection.

3. Cash Flow Assessment:
   Cash at bank improved considerably from £1,460 in 2023 to £12,884 in 2024, which is a positive sign, but this is insufficient to offset the high current liabilities of £26,688. Negative net current assets highlight poor liquidity and working capital management. The company’s dependence on short-term borrowings and director loans suggests fragile cash flow. No audit or detailed profit and loss data were provided, limiting cash flow visibility, but the negative equity and ongoing losses imply operational cash deficits.

4. Monitoring Points:

• Monitor cash flow closely, especially bank overdraft usage and director loan repayments.
• Track movements in trade creditors and taxation liabilities to avoid payment defaults.
• Watch for improvements in net assets and profitability in future accounts filings.
• Review any restructuring or capital injection plans that could strengthen the balance sheet.
• Confirm ongoing compliance with filing deadlines and director conduct to preempt governance risks.