OMARIZE LTD

Executive Summary

OMARIZE LTD is currently experiencing significant financial distress, marked by negative net assets and working capital deficits, indicating liquidity challenges and capital erosion. Immediate actions to improve cash flow, reduce costs, and strengthen capital structure are essential to avoid insolvency risks. With decisive financial management and strategic adjustments, the company can potentially restore financial stability.

OMARIZE LTD - Analysis Report

Company Number: 13130031

Analysis Date: 2025-07-29 19:36 UTC

Financial Health Assessment Report for OMARIZE LTD (formerly FITCO DETERGENT FACTORY UK LTD)

---

1. Financial Health Score: D

Explanation:
The company displays significant financial distress characterized by negative net assets and a persistent working capital deficit. The financial position has deteriorated over recent years, signaling an unhealthy state that requires urgent remedial action to avoid insolvency risks.

---

2. Key Vital Signs

Metric	2023 (£)	Interpretation
Current Assets	29,338	Low liquidity; decrease from 62,105 in 2022
Current Liabilities	88,100	Stable but high short-term obligations
Net Current Assets	-58,762	Negative working capital ("cash flow distress")
Net Assets (Equity)	-58,762	Shareholders' funds are negative ("capital erosion")
Share Capital	100	Minimal equity base
Employees (Average)	1	Micro business scale

Interpretation of Vital Signs:

• Negative Net Current Assets: This is a key symptom of liquidity problems, indicating the company does not have enough short-term assets to cover its short-term liabilities. This puts pressure on meeting immediate financial commitments.
• Negative Net Assets: The company’s liabilities exceed its total assets, indicating accumulated losses or capital depletion, which undermines financial stability and creditor confidence.
• Declining Current Assets: A substantial drop in current assets over the last year suggests shrinking resources available for daily operations.
• Minimal Share Capital: Provides very limited buffer against losses.

---

3. Diagnosis

OMARIZE LTD is showing clear symptoms of financial distress. The persistent negative net assets and working capital deficits indicate that the business is operating with a "thin or no safety margin" against financial shocks. The deterioration from 2022 to 2023—from a net asset deficit of approximately £26k to nearly £59k—points to ongoing losses or worsening asset/liability management.

The company is a micro entity with minimal resources and currently employs only one individual, suggesting limited operational scale. The change of company name and director appointments in 2024 could imply attempts at restructuring or strategic refocusing. However, the financial data does not yet reflect improvement.

The "symptom" of negative working capital is critical. It indicates potential challenges in meeting short-term obligations such as supplier payments, creditor settlements, and potentially payroll. Without swift financial intervention, the company risks slipping into insolvency procedures such as administration or liquidation.

---

4. Recommendations

To restore financial wellness and improve the prognosis, the company should consider the following actions:

a. Strengthen Liquidity and Working Capital

• Inject new capital or secure short-term financing to cover liabilities and restore positive working capital.
• Review and optimize cash flow management, including accelerating receivables and negotiating better payment terms with suppliers.

b. Cost Control and Operational Efficiency

• Evaluate current cost structures and reduce unnecessary expenses to conserve cash flow.
• Given the small size, consider outsourcing non-core activities to reduce fixed costs.

c. Strategic Review of Business Model

• Assess the product mix (retail leather goods, clothing, and manufacturing of personal care products) for profitability and market demand.
• Explore partnerships or diversification to stabilize revenue streams.

d. Governance and Financial Oversight

• Ensure robust financial reporting and early warning systems to detect and address financial issues promptly.
• Engage with professional advisors for turnaround strategies and compliance with filing obligations.

e. Communicate with Stakeholders

• Maintain transparent communication with creditors, investors, and employees about the financial position and recovery plans to build trust and support.

---

Prognosis

Without intervention, OMARIZE LTD faces a challenging financial future with a high probability of insolvency due to liquidity shortages and negative equity. However, with targeted financial restructuring, capital infusion, and operational adjustments, there is potential to stabilize and improve the company’s financial health over the next 12 to 24 months.

---