ONICA BUILDING SOLUTIONS LTD

Executive Summary

Onica Building Solutions Ltd demonstrates significant financial distress characterized by negative net assets, steep working capital deficits, and limited liquidity. The company’s financial trajectory over recent years is declining, with no operational scale and no clear evidence of recovery. Given these factors, credit facilities should be declined until substantial improvements in financial strength and cash flows are evident.

ONICA BUILDING SOLUTIONS LTD - Analysis Report

Company Number: 12391484

Analysis Date: 2025-07-20 18:26 UTC

1. Credit Opinion: DECLINE
   Onica Building Solutions Ltd exhibits a weak financial position with persistent and increasing net liabilities over the last three years, culminating in net assets of -£53,881 as of January 2024. The company’s inability to generate positive net current assets and recurring negative equity indicates an elevated risk of default. Additionally, the absence of employees and minimal operational scale restricts revenue generation and growth potential. Without a clear turnaround plan or evidence of improving cash flows, the company is unlikely to service additional debt responsibly.

2. Financial Strength:
   The balance sheet reflects deteriorating financial health. Fixed assets declined sharply, and current liabilities surged to £40,798 by 2024, while current assets are negligible or negative, resulting in a working capital deficit exceeding £40k. The company holds non-current liabilities of £30,874, further burdening its capital structure. Shareholders’ funds are deeply negative, indicating accumulated losses and erosion of equity. This fragile balance sheet signals poor capital resilience and limited capacity to absorb operational or market shocks.

3. Cash Flow Assessment:
   The lack of disclosed cash or current assets in 2024, alongside a pronounced working capital deficit, suggests acute liquidity constraints. The company’s average employee count is zero, implying minimal operational activity or reliance on subcontractors rather than direct workforce, which could constrain revenue inflows. The rising short-term liabilities relative to assets heighten refinancing and payment risks. No data on operating cash flows or profitability is available, but the balance sheet trends imply negative cash generation, undermining debt servicing ability.

4. Monitoring Points:

• Monitor quarterly liquidity ratios (current ratio, quick ratio) to assess working capital improvements
• Watch for any increase in cash reserves or reduction in current liabilities
• Track any changes in shareholder equity or additional capital injections
• Review operational activity levels or employee count as indicators of business scaling
• Scrutinize director actions or restructuring plans to improve financial position