Company Number: 14419269

Analysis Date: 2025-07-29 15:50 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Omikami Limited shows a significant turnaround in financial position as of June 2024 compared to the prior year, primarily due to the valuation increase in investment property. The company demonstrates potential to service debt, but exposure to group-related financial arrangements and cross guarantees requires monitoring. Approval is conditional on continued group support and verification of cash flow sufficiency to meet short-term obligations.

2. Financial Strength:
   The balance sheet reflects a strong asset base dominated by £4 million in investment property, revalued upward from £2.84 million the prior year. Net assets have improved significantly to £563,635 from a negative position previously. However, the company carries substantial long-term liabilities (£3.57 million bank loans) secured by a group facility and cross guarantees with related companies, which increases contingent risk. Shareholders' funds are positive but modest relative to total liabilities.

3. Cash Flow Assessment:
   Current assets stand at £688,820, mainly debtors (£686,654) owed by group undertakings, with minimal cash (£2,166). Current liabilities are £272,247, resulting in a positive net current asset position of £416,573. The reliance on intra-group debtors and limited cash reserves suggest potential liquidity constraints if group support weakens. Working capital is positive but depends on collectability and timing of group debt repayments.

4. Monitoring Points:

• Collectability and ageing of debtor balances owed by group companies
• Stability and terms of group loan facility and cross guarantees
• Cash flow adequacy to cover ongoing operating expenses and short-term liabilities
• Potential impact of property market fluctuations on investment property valuation and security coverage
• Director conduct and any changes in group relationships affecting financial backing