ONCCCE LTD

Executive Summary

ONCCCE LTD is currently facing financial strain characterized by heavy indebtedness and poor liquidity despite substantial fixed asset holdings. The company’s negative net assets and working capital deficits indicate underlying solvency challenges. Immediate focus on liquidity improvement and debt restructuring is essential to stabilize the financial health and ensure future viability.

ONCCCE LTD - Analysis Report

Company Number: 12428826

Analysis Date: 2025-07-20 18:27 UTC

Financial Health Assessment Report for ONCCCE LTD

---

1. Financial Health Score: D

Explanation:
ONCCCE LTD’s financial condition indicates significant structural weaknesses, particularly in liquidity and solvency. The company's net assets are negative (£-42,329 as at 31 January 2025), indicating liabilities exceed assets, which is a symptom of financial distress. Although the company holds considerable fixed assets, the heavy burden of creditors, particularly long-term liabilities, adversely impacts its financial stability. The low current assets relative to current liabilities also signal potential cash flow constraints. Overall, the financial “vital signs” suggest a need for urgent remedial measures.

---

2. Key Vital Signs

Metric	2025 Figure (£)	Interpretation
Fixed Assets	289,997	Healthy long-term asset base — solid investment in property or equipment.
Current Assets	253	Extremely low liquidity; cash or equivalents are minimal.
Current Liabilities	87,100	Significant short-term obligations; potential liquidity strain.
Net Current Assets (Working Capital)	-86,847	Negative working capital; "symptom of cash flow distress" implying difficulty meeting short-term debts.
Creditors due after 1 year	245,000	Large long-term liabilities; high leverage risk.
Net Assets	-42,329	Negative equity; company is technically insolvent on a balance sheet basis.
Share Capital	100	Minimal equity base; limited buffer against losses.
Employees	0	No staff; possibly a holding or asset management entity.

Interpretation of Vital Signs:
The company’s asset structure is heavily weighted to fixed assets, likely real estate given the SIC codes. However, the company is highly leveraged with creditors totaling £332,100 (both current and non-current), far exceeding liquid assets. The persistent negative net assets over several years indicate ongoing losses or accumulated deficits. Working capital is deeply negative, raising red flags about the company’s ability to fund day-to-day operations without additional financing.

---

3. Diagnosis

The financial “symptoms” point to a company that is asset-rich but cash-poor and overburdened by debt. The negative net worth and persistent negative working capital are classic signs of financial distress, suggesting the company's liabilities are outstripping its ability to generate enough liquid resources to cover short-term obligations. This could be due to declining asset values, high borrowing costs, or operational inefficiencies.

Given the company operates in real estate management and leasing, the lack of current assets and employees suggests it may be acting as a holding or asset management vehicle rather than an active trading business. The high level of creditors, especially long-term, may be loans secured on the fixed assets.

This profile resembles a “patient” with a strong but inflexible skeleton (fixed assets) but poor blood flow (cash liquidity) and overburdened by “medical implants” (debt). Without intervention, the firm risks insolvency or forced restructuring.

---

4. Recommendations

Immediate Actions:

• Improve Liquidity: Seek to increase current assets by accelerating receivables, reducing inventories (if any), or injecting fresh working capital. Explore refinancing to extend current liabilities or convert some debt to equity.
• Debt Restructuring: Renegotiate terms on the £245,000 long-term debt to reduce interest burden or extend repayment schedules to improve solvency.
• Asset Review: Evaluate the fixed assets for potential sale or revaluation to release cash and reduce leverage.
• Operational Review: Even with no employees, review operational costs and overheads to identify any unnecessary expenses.
• Financial Monitoring: Implement rigorous cash flow forecasting and financial controls to monitor liquidity risks closely.

Longer-Term Strategies:

• Strengthen Equity Base: Consider capital injection to restore positive net assets and improve creditworthiness.
• Business Model Assessment: If the company is a holding entity, evaluate whether the current structure aligns with strategic goals and financial sustainability.
• Professional Advice: Engage insolvency or restructuring professionals early if debt servicing becomes unsustainable.

---

Summary

ONCCCE LTD’s financial health shows signs of distress primarily due to excessive debt and very low liquidity despite a solid fixed asset base. The company carries a heavy debt load relative to its equity, resulting in negative net assets and working capital deficits. Without prompt corrective action—focused on improving cash flow, restructuring debt, and possibly strengthening equity—the company risks insolvency. Strategic financial management and possibly external advice are recommended to restore financial wellness.

---