Company Number: 13190404

Analysis Date: 2025-07-20 18:45 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Oneport Building Ltd is an active private limited company engaged in building project development since 2021. The company shows a positive trajectory in net assets from £235 in 2023 to £940 in 2024, indicating some growth. However, it has persistent net current liabilities (negative working capital of £9,367 in 2024), suggesting short-term liquidity issues. The presence of finance lease obligations and director loans adds to financial commitments. The directors appear experienced technically, but there is no detailed evidence of robust financial management beyond basic accounting practices. Given the small scale and negative working capital, credit approval should be conditional on close monitoring of cash flow and debt service capability, with possible limits on borrowing and requirements for updated financial reporting.

2. Financial Strength:
   The company’s balance sheet shows low equity (£940), with fixed assets of £15,757 mainly in motor vehicles, and current assets of £25,387 versus current liabilities of £34,754. The negative net current assets position is a concern as it indicates the company may struggle to meet short-term obligations from liquid resources. The reduction in deferred tax liability from £4,865 to £2,994 is a positive sign but is relatively small. Trade debtors increased significantly to £18,674 in 2024, which may improve liquidity if collected timely but also poses credit risk. The removal of director loans on the balance sheet in 2024 improves leverage ratios slightly. Overall, the company’s financial strength is weak with minimal equity buffer and reliance on external financing.

3. Cash Flow Assessment:
   Cash at bank decreased from £10,473 in 2023 to £6,713 in 2024, indicating tightening liquidity. The company’s working capital remains negative, driven by higher current liabilities including taxes and social security. The hire purchase and lease finance obligations total £6,299, which will require regular servicing. The company’s cash inflows appear dependent on debtor collections, which have improved but still require scrutiny. Limited cash reserves and ongoing liabilities suggest the company has constrained cash flow. Effective management of receivables and control of operating expenses will be critical to avoid liquidity crises.

4. Monitoring Points:

• Monthly cash flow forecasting and monitoring of debtor collection days.
• Tracking the reduction of current liabilities to improve working capital.
• Evaluate the ability to service finance lease and hire purchase obligations on time.
• Review profitability trends when profit & loss accounts become available.
• Monitor any new director loans or related-party transactions.
• Ongoing assessment of management’s financial controls and reporting transparency.