ONEZERO3 SOLUTIONS LIMITED
Company number 07342537 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Credit Analysis: ONEZERO3 SOLUTIONS LIMITED
1. Credit Opinion: DECLINE
Reasoning: This company presents an unacceptable credit risk. The balance sheet is deeply insolvent and deteriorating at an accelerating rate, with net liabilities worsening from -£32,375 (2024) to -£56,413 (2025). The company has been in negative equity territory for three consecutive years, and there is no evidence of debt service capability, profitability, or any recovery trajectory. Net current liabilities of £56,394 indicate the company cannot meet its existing obligations from current assets — a fundamental indicator of financial distress. New credit exposure would rank behind £73,528 in existing liabilities with minimal asset cover.
2. Financial Strength
Balance sheet position is critically weak and worsening.
| Metric | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Total Assets | £17,606 | £23,892 | £34,381 | £55,990 | £34,588 |
| Total Liabilities | £73,528 | £55,371 | £45,661 | £53,751 | £15,627 |
| Net Assets | -£56,413 | -£32,375 | -£12,131 | £1,438 | £18,205 |
Key observations:
- Asset erosion: Total assets have fallen 72% from their 2020 peak of £62,127 to just £17,606. The company is consuming its asset base.
- Liability escalation: Liabilities have grown nearly fivefold from £15,627 (2021) to £73,528 (2025). The composition of these liabilities is unknown due to micro-entity filing, but the scale relative to assets is alarming.
- Insolvency: The company is balance-sheet insolvent by £56,413. Shareholders' funds are deeply negative with only £100 in share capital — there is no equity cushion whatsoever.
- Fixed assets: Reduced to just £556, meaning the business has virtually no tangible asset base.
The trajectory is unbroken and accelerating — net assets have declined every year since 2020, with the rate of deterioration increasing from ~£16k per annum (2021-2023) to over £24k per annum (2024-2025).
3. Cash Flow Assessment
Severe liquidity constraints; working capital is deeply negative.
- Net current liabilities: (£56,394) — current assets of £17,134 (including prepayments) are dwarfed by current liabilities of £73,528
- Current ratio: Approximately 0.23x — far below the 1.0x minimum threshold for a healthy business
- Cash position: Unknown (micro-entity accounts do not provide a cash breakdown), but with only £17,050 in total current assets against £73,528 in current liabilities, cash is likely minimal
The company cannot meet its existing obligations from current resources. It is dependent on creditor forbearance, director support, or continued trading to service debts — all of which represent precarious positions for a new creditor.
Working capital deficiency: £56,394 — this represents the scale of funding required simply to bring current obligations into balance. Any new credit facility would rank alongside existing creditors with minimal prospect of recovery in a distressed scenario.
4. Monitoring Points
If any exposure exists or is being considered despite this recommendation, the following require urgent attention:
| Metric | Risk Level | Action Required |
|---|---|---|
| Net assets trajectory | Critical | Monthly monitoring; any further deterioration signals likely cessation of trading |
| Creditor composition | High | Request full breakdown of £73,528 liabilities — identify director loans vs trade creditors vs HMRC |
| Director loans/undertakings | High | Determine if directors are supporting the business; if loans are being withdrawn, insolvency risk increases |
| Trading profitability | High | Request management accounts — micro-entity filings provide no P&L visibility |
| CCJs/winding-up petitions | High | Check for any legal actions that could force insolvency |
| Filing compliance | Moderate | Currently up to date, but any future delays could signal distress |
| Employee count | Moderate | Increased from 1 to 2 — clarify if this reflects genuine growth or a director being added to payroll |
Red line triggers for immediate review: - Net assets deteriorating beyond -£70,000 - Any CCJs or statutory demands filed - Cessation of director financial support - Failure to file accounts on time
Additional Risk Factors
- Micro-entity opacity: The company files minimal accounts with no P&L, no cash flow statement, and limited notes. This significantly restricts credit assessment capability.
- Related party control: Both directors (Andrew and Lynn Heaton) each hold 25-50% of shares and voting rights, with rights to appoint/remove directors. Decision-making is concentrated, and there are no independent checks on management.
- Business type: SIC code 82990 (other business support services) is competitive and often low-margin. With only 2 employees, this is essentially a personal services business with limited transferable value.
- Longevity vs trajectory: While the company has traded since 2010, the financial position has deteriorated severely since 2020, suggesting a fundamental change in business viability.