OLSFACTORY LIMITED

Executive Summary

OLSFACTORY LIMITED is a newly formed micro-entity with negative net assets and a significant working capital deficit, indicating poor short-term liquidity and weak financial strength. The lack of operating history and minimal asset base present a high credit risk. Credit facilities are not recommended at this stage until the company demonstrates improved financial performance and balance sheet stability.

OLSFACTORY LIMITED - Analysis Report

Company Number: 15199352

Analysis Date: 2025-07-29 19:28 UTC

1. Credit Opinion: DECLINE
   OLSFACTORY LIMITED’s latest micro-entity accounts show a negative net asset position of £4,537, indicating the company’s liabilities exceed its assets. The financials reveal current liabilities of £5,118 against current assets of only £352, resulting in negative net current assets (working capital deficit) of £4,766. This signals weak liquidity and an inability to cover short-term obligations from available current assets. Furthermore, the company was incorporated recently in October 2023 and has just one employee, so there is no financial track record or evidence of established cash flow generation. The concentrated ownership and management by a single director/major shareholder adds governance risk. Given these factors, the company currently lacks the financial strength and operational history to support debt repayment or credit extension without significant risk.

2. Financial Strength:
   The balance sheet is fragile with total net liabilities of £4,537. Fixed assets and current assets are minimal, and the company’s capital and reserves are negative. This indicates that the business started with or has already incurred losses exceeding its equity injection. The absence of positive retained earnings or reserves reduces the buffer to absorb trading losses or economic shocks.

3. Cash Flow Assessment:
   There is a critical working capital deficiency, as current liabilities exceed current assets by £4,766. This suggests the company may struggle to meet immediate payment obligations without additional financing or capital contributions. The micro-entity accounts do not provide a cash flow statement, but the working capital deficit and negative equity imply cash flow challenges.

4. Monitoring Points:

• Improvement in net current assets and liquidity position
• Generation of positive profitability and cash flow from operations
• Timely filing of future accounts and confirmation statements to monitor compliance
• Any capital injections or external financing arrangements to strengthen balance sheet
• Progress in building a track record of revenues and managing payables/receivables