ONEFLOW ENGLAND LIMITED

Executive Summary

ONEFLOW ENGLAND LIMITED exhibits a stable and growing equity base with adequate working capital but faces liquidity challenges due to declining cash and high receivables. The company benefits from parent company support but should focus on improving cash flow management and reducing dependency to ensure long-term financial health. Implementing tighter credit controls and enhancing operational efficiencies will strengthen its financial wellness.

ONEFLOW ENGLAND LIMITED - Analysis Report

Company Number: 14114623

Analysis Date: 2025-07-20 16:56 UTC

Financial Health Assessment for ONEFLOW ENGLAND LIMITED

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1. Financial Health Score: B

Explanation:
The company demonstrates a solid balance sheet with positive net assets and net current assets, indicating a generally healthy financial position. However, there are signs requiring attention such as a decline in cash reserves and increased reliance on accruals and deferred income, which suggest some liquidity constraints. The business is stable but could improve its cash flow management and operational efficiency to strengthen its financial resilience.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Net Assets	50,044	Positive net assets indicate the company’s total resources exceed liabilities—a healthy sign.
Net Current Assets (Working Capital)	47,712	Adequate working capital suggests the company can cover short-term liabilities with current assets.
Cash at Bank	8,365	Cash reserves have dropped significantly from £20,767 in 2023, signaling potential liquidity stress.
Debtors	100,593	High receivables relative to cash means cash is tied up in customer payments, potentially affecting liquidity.
Current Liabilities	61,246	Current liabilities decreased from 2023 but remain substantial, including accrued expenses.
Accruals & Deferred Income	42,629	Large increase indicates deferred revenues or accrued costs, which may mask underlying cash flow timing issues.
Fixed Assets (net)	3,109	Low fixed assets consistent with software development business—mainly intangible or minimal tangible assets.
Turnover & Profitability	Not disclosed	Turnover and profit figures not provided; limits ability to assess operational efficiency and profitability.
Going Concern	Supported by parent company	The company depends on its parent (Oneflow AB) for operational support, which is a risk factor if support ceases.

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3. Diagnosis: Financial Health Overview

ONEFLOW ENGLAND LIMITED, operating in the business and domestic software development sector, presents a generally stable financial condition with positive net assets and a comfortable working capital position. The net assets have increased from £36,582 in 2023 to £50,044 in 2024, showing growth in equity. However, cash reserves have significantly declined by about 60%, from £20,767 to £8,365, which is a symptom of potential liquidity stress—a key vital sign akin to a patient showing reduced blood volume despite overall body strength.

The company's current assets are largely composed of debtors (£100,593), indicating a considerable portion of funds are yet to be collected from customers. This could delay cash inflows and impact the company’s ability to meet immediate obligations without external support. The notable increase in accruals and deferred income (£42,629 vs. £10,999 in 2023) suggests the company might be carrying forward unearned income or accruing expenses, which could complicate cash flow management.

The directors’ report confirms no material uncertainties about going concern but notes dependence on the parent company for ongoing support. This dependence is a mixed indicator; it provides a safety net but also indicates a vulnerability should parent support be withdrawn.

The reduction in average employee numbers from 7 to 3 may reflect cost-cutting or operational scaling, which could improve future profitability but also signals possible contraction or restructuring.

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4. Recommendations: Steps to Improve Financial Wellness

• Enhance Cash Flow Management:
  Implement rigorous debtor management to accelerate collections. Consider offering early payment discounts or stricter credit terms to reduce cash conversion cycle and boost cash reserves.

• Review Accruals and Deferred Income:
  Conduct detailed analysis of deferred income and accrued expenses to ensure they accurately reflect business realities and do not obscure cash flow issues. Align revenue recognition closely with cash receipts.

• Strengthen Liquidity Buffer:
  Explore options to increase cash reserves through short-term financing, parent company support agreements, or operational improvements to build a more robust liquidity cushion.

• Parent Company Dependency Mitigation:
  Develop a contingency plan to reduce overreliance on the parent company. This could include securing independent financing lines or building stronger revenue streams locally.

• Operational Efficiency and Growth:
  Assess the impact of reduced staffing on business capacity and explore automation or outsourcing to maintain service quality while controlling costs.

• Regular Financial Monitoring:
  Establish monthly financial health check-ups focusing on cash flow forecasts, debtor aging, and creditor payments to catch early signs of distress.

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