ONYX EVENTS LIMITED

Executive Summary

Onyx Events Limited shows improving financial health with increased net assets and working capital, supported by retained earnings growth. However, liquidity is somewhat constrained by increased stocks and reliance on intercompany debtors. Conditional credit approval is advised with ongoing monitoring of cash flow, debtor collectability, and debt servicing capacity to mitigate potential risks.

ONYX EVENTS LIMITED - Analysis Report

Company Number: 12410330

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

1. Credit Opinion: CONDITIONAL APPROVAL
   Onyx Events Limited demonstrates an improving financial position with growing net assets and working capital. However, the company carries a moderate level of long-term debt (£149k), and its trade debtors are partly intercompany balances (£333k owed by group undertakings), which may not be immediately liquid. The company operates in public relations and communications, a sector sensitive to economic cycles. Given the positive trajectory but some reliance on group debtors and lease commitments, approval is recommended with conditions including monitoring liquidity and debt servicing closely.

2. Financial Strength:

• Net assets nearly doubled from £101k in 2023 to £199.5k in 2024, indicating strengthened equity.
• Fixed assets decreased, reflecting depreciation, but intangible assets increased slightly, showing investment in non-physical assets.
• Current assets grew substantially from £463k to £703k, mainly due to increased stocks (work in progress) and debtors.
• Current liabilities increased but at a slower pace, resulting in improved net current assets of £315k (up from £214k).
• Long-term creditors remain stable around £149k, representing moderate gearing relative to equity.
• Share capital is nominal (£100), so equity improvements derive from retained earnings.

3. Cash Flow Assessment:

• Cash at bank decreased from £66k to £27k, which could indicate cash outflows or investment in working capital.
• Stocks (including work in progress) rose sharply to £247k from £52k, tying up cash in inventory/projects.
• Debtors rose to £429k, but £333k is amounts owed by group undertakings, which may not be readily collectible in a crisis.
• Trade creditors rose moderately to £112k.
• Operating lease commitments total £108.7k over the next five years, with £81.5k due within one year, impacting near-term cash requirements.
  Overall, liquidity appears adequate but somewhat reliant on the group for receivables; cash flow management should be monitored carefully to ensure timely debt servicing.

4. Monitoring Points:

• Collectability and ageing of debtors, especially intercompany balances.
• Cash flow from operations and the ability to convert stocks and work in progress into cash.
• Adequacy of cash reserves to cover lease commitments and finance charges.
• Stability of revenue streams in the PR sector amid economic fluctuations.
• Management of long-term debt levels and any covenant compliance.
• Director changes and governance to ensure continued sound financial stewardship.