O'NEILL CONSTRUCTION(NI) LTD

Executive Summary

O'Neill Construction(NI) Ltd exhibits strong financial health, marked by improved liquidity and growing net assets, indicating robust operational management and financial stability. The company should review its rising accruals to ensure sustainable cash flows and continue prudent debt management to maintain its positive financial trajectory.

O'NEILL CONSTRUCTION(NI) LTD - Analysis Report

Company Number: NI667327

Analysis Date: 2025-07-20 18:37 UTC

Financial Health Assessment for O'Neill Construction(NI) Ltd (NI667327)
Financial Year Ending 31 March 2024

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1. Financial Health Score: B

Explanation:
O'Neill Construction(NI) Ltd demonstrates a solid financial position with improving net assets and strong working capital growth in the latest year. The company shows healthy liquidity and stable asset base for a micro-entity in the construction sector. Some concerns include increased long-term creditors and accruals, which warrant monitoring. Overall, the company's financial "vital signs" suggest good health with positive momentum.

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2. Key Vital Signs:

Metric	2024 (£)	2023 (£)	Interpretation
Fixed Assets	71,015	70,326	Stable investment in long-term assets, indicating consistent operational base.
Current Assets	235,335	131,736	Significant increase in liquid or near-liquid resources; "healthy cash flow" indicator.
Current Liabilities	(164,135)	(119,853)	Increase in short-term obligations; manageable given growth in current assets.
Net Current Assets	71,200	11,883	Strong improvement in working capital, showing ability to cover short-term debts comfortably.
Creditors >1 Year	(30,000)	(60,000)	Reduction in long-term debts; positive "symptom" of reduced leverage.
Accruals & Deferred Income	(48,602)	(4,200)	Sharp rise may indicate build-up of upcoming expenses or deferred revenue; requires scrutiny.
Net Assets (Shareholders' Funds)	63,613	18,009	Growth in equity base signals improved retained earnings or capital injection; "healthy heart."

Additional Observations:

• The company remains a micro entity with minimal share capital (£100), typical for small private limited companies.
• Average employees stable at 3, consistent with micro classification.
• No audit required, accounts prepared under micro-entity provisions.
• Operating in construction of domestic and commercial buildings sectors, which can be capital intensive and sensitive to economic cycles.

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3. Diagnosis: Overall Financial Condition

O'Neill Construction(NI) Ltd’s financial "vital signs" reveal a company recovering or growing steadily since incorporation in 2020. The significant increase in net current assets from £11,883 to £71,200 in the latest year is a strong "pulse" indicator of improved liquidity and operational efficiency. This suggests the company can meet its short-term obligations more comfortably, a sign of healthy cash flow management.

The rise in accruals and deferred income, however, is a "symptom" that needs attention. It could reflect either accrued expenses that have not yet been paid or deferred revenue (payments received but work not yet completed). If unchecked, this could stress future cash flows.

Net assets have increased substantially, showing that the company has built a stronger equity buffer which serves as a financial "immune system" against shocks. The reduction in long-term creditors is a positive move towards lowering financial risk.

There is no indication of distress, insolvency, or overdue filings, and directors have maintained compliance. The company appears financially stable, with a good balance between assets and liabilities, but should watch the growth in accruals carefully.

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4. Recommendations:

To maintain and improve financial wellness, O'Neill Construction(NI) Ltd should consider:

• Monitor Accruals & Deferred Income: Conduct a detailed review of what constitutes the sharp increase to ensure it does not mask hidden liabilities or revenue recognition issues. This "symptom" could affect future liquidity.

• Cash Flow Forecasting: Regularly update cash flow projections to anticipate any short-term funding gaps, especially given the construction industry's cyclical nature.

• Debt Management: Capitalize on the reduced long-term creditors by negotiating favorable payment terms or considering refinancing options if needed to support growth without overleveraging.

• Profit Retention and Growth: Focus on improving profitability to build retained earnings further, strengthening the equity base and financial resilience.

• Compliance and Governance: Continue strict adherence to filing deadlines and accounting standards to avoid penalties and maintain stakeholder confidence.

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