Company Number: 12708619

Analysis Date: 2025-07-29 20:58 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Onmo Limited demonstrates substantial growth and significant capital support from shareholders, indicating strong backing. However, the company recorded a large operating loss (£13.98m) in the latest year, raising concerns about ongoing profitability and cash generation. The directors rely on shareholder funding and a structured financing arrangement to support operations and debt book growth. Credit approval is recommended subject to ongoing monitoring of profitability improvements, timely shareholder support, and continued structured finance arrangements to ensure liquidity.

2. Financial Strength:
   The balance sheet has strengthened markedly year-on-year. Net assets increased from £2.54m in 2023 to £37.6m in 2024, driven primarily by a £42.5m capital injection reflected in the share premium account. Fixed assets include £1.6m in intangible assets (software development) and £35k in equipment. Current assets rose sharply to £60.65m, mainly due to a substantial increase in trade debtors (£35.9m) and cash reserves of £6.57m. Current liabilities increased to £24.69m, reflecting amounts owed under the structured financing agreement. The company’s capital structure shows strong equity backing but also significant creditor exposure linked to financing the debt book.

3. Cash Flow Assessment:
   Cash at bank increased significantly to £6.57m, improving liquidity compared to prior years. Net current assets are strong at £36.0m, indicating adequate working capital to meet short-term obligations. However, the large increase in trade debtors (£35.9m) suggests a concentration of credit risk in the receivables portfolio; effective collection and impairment provisioning are critical. The company’s reliance on a structured financing vehicle to fund the debt book means cash flow sustainability depends on continued access to this funding and shareholder support. The board’s confirmation of shareholder backing mitigates short-term liquidity risks.

4. Monitoring Points:

• Profitability trends and reduction of operating losses to ensure self-sustaining cash flows.
• Debt book performance, including arrears, defaults, and adequacy of loan loss provisions.
• Continued shareholder funding support and access to structured finance facilities.
• Management of trade debtor collections and credit risk concentrations.
• Timely filing of accounts and confirmation statements to maintain compliance and transparency.