ONE ENVIRONMENTS (HOLDINGS) LTD

Executive Summary

ONE ENVIRONMENTS (HOLDINGS) LTD shows a strong capital base anchored by significant fixed assets but suffers from critical liquidity issues evidenced by negative working capital and negligible cash reserves. Immediate focus on improving cash flow and managing short-term liabilities is essential to maintain operational health and avoid financial distress.

ONE ENVIRONMENTS (HOLDINGS) LTD - Analysis Report

Company Number: 14387516

Analysis Date: 2025-07-29 14:55 UTC

Financial Health Assessment for ONE ENVIRONMENTS (HOLDINGS) LTD

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1. Financial Health Score: B

Explanation:
The company shows a solid net asset base (£417,001) primarily supported by fixed assets (investments) of £540,000, indicating a strong capital foundation. However, the extremely low current assets (£1) compared to current liabilities (£159,000) reveals a significant liquidity concern, akin to a patient with a strong skeletal frame but weak circulatory system. This imbalance suggests potential short-term cash flow distress, needing close management. Hence, the score is a good "B" — healthy in capital structure but symptomatic of liquidity stress.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets (Investments)	540,000	Strong asset base; indicates the company holds significant investments, a healthy muscle mass.
Current Assets (Cash)	1	Critically low liquid assets, signaling a poor cash flow condition; the heart is barely pumping.
Current Liabilities	159,000	High short-term obligations; represents immediate debts needing settlement.
Net Current Assets (Working Capital)	-158,999	Negative working capital; symptomatic of short-term financial distress.
Total Assets Less Current Liabilities	381,001	Positive cushion after short-term liabilities; good structural health indicator.
Creditors Due After One Year	36,000	Moderate long-term liabilities; manageable with good planning.
Net Assets / Shareholders Funds	417,001	Positive net worth indicates the business has equity "reserves" to fall back on.
Share Capital	1.02	Minimal nominal capital; most equity is in reserves and investments.

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3. Diagnosis: Financial Condition Overview

ONE ENVIRONMENTS (HOLDINGS) LTD appears to be in the early stages of its lifecycle (incorporated in 2022), with its primary activity as a holding company. The financials reveal a solid capital structure with significant fixed asset investments, akin to a patient with strong bones and muscle mass.

However, the company's liquidity is a critical concern. With current assets virtually non-existent (only £1 in cash) and current liabilities of £159,000, the business is experiencing a severe cash flow bottleneck. This is like a patient with strong bones but dangerously low blood pressure — the company might struggle to meet its immediate obligations, risking short-term financial distress.

The negative working capital indicates the company owes more in the short term than it has readily available to pay. While the net asset position is positive due to long-term investments, these fixed assets are not easily liquidated to meet immediate cash needs. The presence of £36,000 due in longer-term creditors adds to future obligations but is less urgent.

No audit was required; accounts are prepared under small company exemptions, which suggests the company is small and possibly in growth or transition phase, focusing on building its asset base rather than immediate profitability or liquidity.

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4. Recommendations: Financial Wellness Actions

• Improve Liquidity / Cash Flow Management:
  Immediate attention is needed to increase liquid assets or reduce current liabilities. Consider negotiating extended payment terms with creditors, accelerating receivables, or injecting short-term financing. Think of this as increasing the bloodstream pressure to ensure vital organs (operations) receive nutrients timely.

• Asset Utilisation Strategy:
  Assess the fixed assets (investments) for potential monetisation or leveraging opportunities to convert some illiquid assets into cash if necessary. This resembles mobilizing stored energy reserves when immediate resources are low.

• Monitor Short-Term Debt Obligations:
  Put in place strict monitoring and forecasting of cash flows to avoid missed payments or penalties, which could worsen financial symptoms and lead to a crisis.

• Capital Injection / Equity Funding:
  Consider raising additional equity or shareholder loans to strengthen working capital and provide a buffer against liquidity shocks.

• Operational Efficiency:
  Although the company is a holding entity, ensure any subsidiaries or related activities maintain healthy cash flows and profitability to support the parent company.

• Regular Financial Check-ups:
  Schedule quarterly financial reviews focusing on liquidity ratios and cash flow statements to detect early signs of distress and allow timely intervention.

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