OLICANA HEALTHCARE LIMITED

Executive Summary

OLICANA HEALTHCARE LIMITED is currently experiencing financial strain, marked by persistent negative equity and high liabilities relative to assets. While operational compliance is maintained, the company must urgently address its capital and liquidity position to avoid worsening distress. With strategic capital infusion and cash flow management, the company can improve its financial health and position itself for sustainable growth.

OLICANA HEALTHCARE LIMITED - Analysis Report

Company Number: 14149752

Analysis Date: 2025-07-29 16:08 UTC

Financial Health Assessment for OLICANA HEALTHCARE LIMITED

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1. Financial Health Score: D

Explanation:
OLICANA HEALTHCARE LIMITED's financial health currently scores a D grade. While the company is operational and compliant with filing deadlines, key financial indicators show signs of distress, particularly persistent negative net assets (shareholders’ funds) and significant liabilities exceeding current assets. This reflects underlying financial challenges needing attention to prevent deterioration.

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2. Key Vital Signs

Metric	2025 Value (£)	Interpretation
Net Assets	-2,990	Negative net assets indicate the company’s liabilities exceed its total assets—a symptom of financial strain.
Current Assets	8,654	Represents liquid resources available for short-term obligations; increased from prior years, showing some improvement.
Current Liabilities	32,250	High short-term debts that the company must pay within a year, creating liquidity pressure.
Net Current Assets (Working Capital)	8,654	Positive working capital suggests some ability to cover short-term debts with current assets, though this conflicts with listed current liabilities, possibly a reporting nuance.
Fixed Assets	20,606	Long-term investments and assets provide operational capacity but are less liquid.
Shareholders Funds	-2,990	Equity is negative, meaning accumulated losses have eroded initial investment and reserves.

Observations:

• The company shows persistent negative equity over the past three years, indicating "symptoms of distress" in capital structure.
• Current assets have improved but remain low relative to current liabilities, risking liquidity crunch.
• No employees aside from directors, implying a very lean operation or reliance on contractors.

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3. Diagnosis

OLICANA HEALTHCARE LIMITED exhibits classic signs of a financial patient struggling with capital depletion and liquidity tension. The negative net assets are akin to a patient with a weakened heart—there is insufficient "capital blood" to sustain growth or absorb shocks. Though current assets have improved, the high level of current liabilities is a "symptom of distress" suggesting the company may face challenges meeting short-term obligations without additional financing or improved cash inflows.

The fixed assets base is relatively stable but does not compensate for the negative equity. The absence of employees suggests low operational overhead, which may be a deliberate strategy to contain costs but could limit growth potential.

Given the company was incorporated recently (2022) and is classified as a micro-entity, early-stage investment and development phases could explain some financial strain. However, without a clear strategy to improve profitability or capital structure, the prognosis remains guarded.

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4. Recommendations

To improve its financial wellness and stabilize the condition, OLICANA HEALTHCARE LIMITED should consider the following steps:

• Strengthen Capital Base: Seek additional equity investment or shareholder loans to eliminate negative net assets and restore financial "vitality." This is akin to administering a transfusion to restore strength.

• Improve Cash Flow Management: Tighten control over receivables and payables to ensure that current liabilities are covered by liquid assets. Consider negotiating longer payment terms with creditors or accelerating client payments.

• Cost Optimization: Continue to maintain lean operations but evaluate if strategic hires or outsourcing could improve revenue generation without excessive cost.

• Profitability Focus: Develop targeted strategies to increase revenue from healthcare services or specialist clinics, possibly expanding patient base or service offerings.

• Monitor Financial Indicators Regularly: Implement monthly financial reviews to detect early warning signs—like cash flow shortages or increasing liabilities—before they become critical.

• Engage Professional Advice: Consult financial advisors or turnaround specialists to create a robust recovery plan and explore refinancing options.

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