OLIVER GREEN LTD

Executive Summary

Oliver Green Ltd is a newly established small business with a positive net asset position and adequate liquidity to meet short-term liabilities. While the company shows initial financial stability, limited trading history and a substantial corporation tax creditor warrant cautious credit support. Conditional approval is recommended, subject to close monitoring of tax payments and business performance going forward.

OLIVER GREEN LTD - Analysis Report

Company Number: 15398734

Analysis Date: 2025-07-29 14:56 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Oliver Green Ltd is a newly incorporated private limited company (incorporated January 2024) with its first set of filed accounts to January 31, 2025. The company shows a positive net asset position (£9,813) and positive net current assets (£5,998), supported by a healthy cash balance (£45,229). However, the company has a significant corporation tax creditor of £20,174 due within a year, which could pressure liquidity if not managed carefully. The business is small scale (single director and 1 employee), with limited trading history and no revenue figures disclosed, thus increasing risk. The director holds full control and shareholding, indicating concentrated management but also clear accountability. Approval is recommended on the condition that ongoing updates on trading performance and tax payment plans are provided, and that the company maintains its cash position relative to liabilities.

2. Financial Strength:
   The balance sheet reflects modest financial strength typical for a start-up: tangible fixed assets of £4,565 and net assets of £9,813. Share capital is minimal (£2), and the company retains accumulated profits of £9,811, suggesting initial profitability or capital injections. Current liabilities of £39,231 are covered by current assets of £45,229 (mainly cash), resulting in a positive working capital position. Provisions for deferred tax of £750 have been recognized appropriately. The lack of long-term debt and director advances reduces financial risk. Overall, the balance sheet shows a stable foundation but limited scale and substance due to the company’s infancy.

3. Cash Flow Assessment:
   Liquid cash of £45,229 comfortably exceeds current liabilities of £39,231, indicating good short-term liquidity. However, a corporation tax liability of £20,174 is significant and should be monitored closely to avoid default. Net current assets of £5,998 show positive working capital but are modest in absolute terms. Without detailed profit and loss data or cash flow statements, cash flow sustainability is uncertain but the available cash buffer suggests the company can meet near-term obligations if no unexpected cash outflows arise.

4. Monitoring Points:

• Corporation tax payment status and any outstanding tax liabilities.
• Revenue generation and profit trends in subsequent financial periods.
• Cash reserves relative to creditor balances and operational expenses.
• Director’s continued involvement and any changes in ownership or management.
• Compliance with filing deadlines and any changes in company status or credit terms with suppliers.