ONYX TECHNOLOGIES LIMITED

Executive Summary

ONYX TECHNOLOGIES LIMITED has demonstrated significant financial improvement over the past year, moving from a fragile liquidity position to a healthier operating footing. While the company remains small with modest assets and minimal capital, its positive working capital and net assets growth provide a stable foundation. Ongoing focus on cash flow management, profitability, and strategic investment will be key to sustaining this upward trajectory and strengthening long-term financial health.

ONYX TECHNOLOGIES LIMITED - Analysis Report

Company Number: 12522041

Analysis Date: 2025-07-29 18:00 UTC

Financial Health Assessment for ONYX TECHNOLOGIES LIMITED

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1. Financial Health Score: B-

Explanation:
ONYX TECHNOLOGIES LIMITED shows signs of recovery and improving financial health, reflected by a strengthening balance sheet and positive net assets after a weak prior year. However, as a micro-entity with limited capital (£1 share capital) and modest absolute figures, there remains room for improvement in liquidity management and asset base expansion to ensure sustained growth and resilience. The "B-" grade acknowledges progress but reflects caution given the company’s early stage and relatively thin financial buffers.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Fixed Assets	784	0	Introduction of fixed assets suggests investment in long-term resources — a positive sign.
Current Assets	22,096	17,027	Healthy increase indicates improved liquidity and ability to cover short-term obligations.
Current Liabilities	15,141	16,902	Slight reduction in short-term debts eases pressure on working capital.
Net Current Assets (Working Capital)	6,955	125	Significant improvement in working capital signals better short-term financial health.
Net Assets (Equity)	7,439	125	Substantial growth in equity reflects retained earnings accumulation and stronger solvency.
Share Capital	1	1	Minimal share capital means reliance on retained earnings and external financing for growth.
Average Number of Employees	2	2	Stable staffing levels consistent with micro-entity scale and controlled overheads.

Interpretation of Vital Signs:

• The jump in net current assets from £125 to nearly £7,000 is the most encouraging "heartbeat" metric, indicating the company has moved from a fragile cash flow position to a more comfortable liquidity buffer.
• The increase in net assets shows the company is building a healthier equity base, which is like strengthening the financial "immune system."
• Fixed assets acquisition, though small, suggests investment in operational capacity, a positive forward-looking signal.
• Current liabilities have decreased slightly, reducing immediate financial strain.

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3. Diagnosis: Overall Financial Condition

ONYX TECHNOLOGIES LIMITED presents a classic case of a young micro-entity emerging from a financially tight position. The company experienced almost break-even net assets in 2023, which can be seen as symptoms of early-stage financial stress or limited profitability. However, the rapid improvement by 2024 indicates successful management actions, such as better cash flow control, cost management, or increased revenues.

The key "symptom" of distress—very low working capital—has been addressed, and now the company enjoys a healthy cash flow cushion. However, the total scale of operations remains small, with limited fixed assets and minimal share capital, meaning the company is still vulnerable to external shocks or unforeseen expenses.

The director appears to have maintained stable control and oversight, with no red flags in governance or compliance. The micro-entity accounting framework and exemption from audit align with the company's size, reducing administrative burdens but requiring disciplined internal controls.

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4. Recommendations: Steps to Improve Financial Wellness

1. Build Cash Reserves and Working Capital Buffer:
   Continue to focus on increasing cash reserves and maintaining positive net current assets to ensure liquidity even during slow periods. This is akin to maintaining a "healthy pulse" in daily operations.

2. Expand Fixed Asset Base Strategically:
   Consider targeted investments in technology or equipment that could enhance operational efficiency or open new revenue streams. This strengthens the company's long-term "skeletal structure."

3. Enhance Profitability and Retained Earnings:
   Monitor margins closely and explore opportunities to improve operational profitability. Increasing retained earnings will underpin equity growth and financial resilience.

4. Maintain Rigorous Financial Monitoring:
   Implement regular financial reviews and cash flow forecasting to detect early "symptoms" of distress. Timely interventions can prevent issues from becoming critical.

5. Evaluate Capital Structure:
   Though minimal share capital is common in micro-entities, consider if raising external equity or debt financing might support growth ambitions, while balancing risk.

6. Plan for Scale:
   As the business grows, ensure compliance with filing deadlines and consider preparing for audit requirements if thresholds are exceeded. This is like preparing for more complex "check-ups" as the company matures.

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