OMAQ DISPLAY DELIVERY LTD

Executive Summary

OMAQ DISPLAY DELIVERY LTD is a start-up micro-entity with a small but positive net asset base alongside working capital challenges due to current liabilities exceeding current assets. Credit approval is conditional, given the limited trading history and leveraged balance sheet, with emphasis on ongoing cash flow monitoring to ensure debt servicing capability. Management appears stable, but the company’s early stage nature warrants cautious credit exposure.

OMAQ DISPLAY DELIVERY LTD - Analysis Report

Company Number: 14849605

Analysis Date: 2025-07-29 17:40 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   OMAQ DISPLAY DELIVERY LTD is a newly incorporated micro-entity with its first set of accounts filed. The business operates in joinery installation and manufacture of office/shop furniture. While the company shows positive net assets (£5,022), it has a significant amount of long-term creditors (£20,431) exceeding current assets, which suggests reliance on external financing or shareholder loans. Given the early stage of the business and limited financial history, credit approval should be conditional on monitoring cash flow and debt servicing ability over the next 12 months.

2. Financial Strength:
   The company’s balance sheet is modest, with fixed assets of £30,238 and current assets of only £12,410. Current liabilities amount to £17,195, resulting in negative net current assets of -£4,785, indicating a working capital deficiency. However, total net assets remain positive at £5,022 after accounting for long-term liabilities of £20,431. This structure points to a leveraged position typical for a start-up, with equity funding supporting initial fixed assets but limited liquidity buffer.

3. Cash Flow Assessment:
   Current liabilities exceed current assets, indicating potential short-term liquidity pressure. The company’s ability to meet short-term obligations depends on cash generation from operations or further capital injections. The average employee number is just 2, which may help keep operating expenses low initially. Monitoring cash flow statements and payment patterns will be crucial to ensure ongoing solvency.

4. Monitoring Points:

• Liquidity trends and ability to convert work-in-progress or receivables into cash promptly.
• Changes in creditors and debt structure, especially if long-term liabilities increase.
• Profitability and cash generated from core business activities as trading progresses.
• Directors’ conduct and any changes in control or ownership that may affect governance.
• Compliance with filing deadlines to avoid regulatory risks.