OMEGA 4 LONDON (UK) LTD

Executive Summary

OMEGA 4 LONDON (UK) LTD shows significant financial distress characterized by negative net assets and working capital deficits, indicating liquidity and solvency challenges. Immediate measures to improve cash flow and capital structure are essential to stabilize the business. Without intervention, financial health may deteriorate further, risking insolvency.

OMEGA 4 LONDON (UK) LTD - Analysis Report

Company Number: 14501351

Analysis Date: 2025-07-29 12:49 UTC

Financial Health Assessment of OMEGA 4 LONDON (UK) LTD as of 30 November 2023

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1. Financial Health Score: D

Explanation:
The company shows significant signs of financial distress, primarily due to negative net assets and working capital deficits. While it is still operational and compliant with filing obligations, the balance sheet reveals a fragile financial state that requires urgent attention. This score reflects serious concerns but not insolvency yet.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	175,500	Represents investment in long-term assets, a positive indicator of substance.
Current Liabilities	213,549	Obligations due within a year; relatively high compared to assets.
Net Current Assets (Working Capital)	-213,549	Negative working capital, indicating inability to cover short-term debts.
Total Assets Less Current Liabilities	-38,049	Overall net assets negative, signifying liabilities exceed assets.
Shareholders' Funds	-38,049	Equity is negative; the company’s net worth is below zero.
Number of Employees	2	Small workforce consistent with micro entity status.

Interpretation:

• The negative net current assets ("working capital") is a critical symptom of liquidity strain — akin to a patient showing low blood pressure, signaling a lack of immediate resources to meet obligations.
• Negative shareholder funds indicate the company is "underwater" financially, meaning its debts surpass its assets. This is a serious warning sign of financial distress.
• The presence of fixed assets shows some investment in tangible resources, which could be leveraged or sold in a restructuring scenario.

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3. Diagnosis

Symptoms Analysis:

• The company has been operating for just over a year, indicating it is in the start-up phase. Early-stage companies often have uneven financials, but the current position shows a serious shortfall in liquidity and net worth.
• Negative net assets and working capital suggest the company might be relying on external financing or shareholder loans to meet its short-term obligations. This condition is similar to a patient with a weak heart output struggling to circulate blood effectively.
• No audit requirement and micro-entity status mean that detailed financial scrutiny may be limited, but the basic figures reveal distress.
• Absence of overdue filings or director changes shows compliance discipline, which is a positive sign.

Overall Condition:
The company is in a fragile financial state with symptoms of liquidity crisis and capital deficiency. Without intervention, it risks insolvency or forced restructuring. The underlying business may be viable but is currently struggling to maintain financial health.

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4. Recommendations

Immediate Actions:

• Improve Liquidity: Seek short-term financing or inject capital to restore positive working capital. This is akin to administering emergency fluids to stabilize a patient’s condition.
• Cost Control: Monitor and reduce overheads and discretionary spending to conserve cash flow.
• Asset Review: Evaluate fixed assets for potential sale or revaluation to improve the balance sheet.
• Financial Planning: Develop a cash flow forecast and budget to manage upcoming obligations effectively.

Medium-Term Actions:

• Capital Restructuring: Consider equity injection from shareholders or restructuring debts to improve net asset position.
• Revenue Growth: Focus on strategies to increase income, such as expanding rental or leasing activities consistent with SIC code 68209.
• Engage Advisors: Consult financial and legal advisors for turnaround strategies and to avoid insolvency risks.

Monitoring:

• Regularly review financial statements and key performance indicators to catch early warning signs.
• Maintain compliance with Companies House filings to avoid penalties and maintain stakeholder confidence.

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