OPTIMAL CARETECH SOLUTIONS LTD

Executive Summary

Optimal CareTech Solutions Ltd exhibits significant solvency and liquidity concerns with worsening negative net current assets and no employees reported. While statutory compliance is maintained, the financial indicators raise serious questions about operational sustainability and financial health. Further detailed due diligence is necessary to ascertain the viability of the business and the integrity of its financial reporting.

OPTIMAL CARETECH SOLUTIONS LTD - Analysis Report

Company Number: 13116160

Analysis Date: 2025-07-20 12:14 UTC

1. Risk Rating: HIGH
   The company’s latest micro-entity accounts show significant net current liabilities of £46,572 as of 31 January 2025, indicating an inability to cover short-term obligations with current assets. This deteriorating working capital position, worsened from prior years, points to acute solvency and liquidity risks.

2. Key Concerns:

• Negative Net Current Assets: The company reports current liabilities far exceeding current assets, creating a net current liability position that signals potential cash flow difficulties.
• No Employees Reported: The absence of employees raises questions about operational capacity and business sustainability given its classification in residential care and staffing activities.
• Minimal Share Capital and Equity Erosion: Share capital is nominal (£1.00), and shareholders’ funds are negative and worsening, indicating sustained losses or accumulated deficits undermining financial stability.

3. Positive Indicators:

• Up-to-date Filings: No overdue accounts or confirmation statements, indicating compliance with statutory filing requirements.
• Active Website and Social Media Presence: Suggests ongoing commercial activity and a degree of operational engagement in the staffing sector.
• Established Directors and PSCs: Presence of multiple directors and persons with significant control suggests governance structures are in place, although their effectiveness requires further review.

4. Due Diligence Notes:

• Examine Cash Flow Statements: To understand the underlying causes of the negative working capital and assess if the company can meet near-term obligations.
• Investigate Business Model and Revenue Streams: Verify if the company is generating revenue consistent with its stated SIC codes (residential care and temporary staffing) despite zero reported employees.
• Review Related Party Transactions and Director Loans: Given the negative equity, scrutinize potential financial support from directors or related parties.
• Confirm Accuracy of Financial Reporting: The large negative net current assets contrast with positive net assets figures in narrative (possible data inconsistency). Clarify the true financial position.
• Assess Directors’ Conduct and Company History: No disqualifications noted, but turnover in directors (resignation in mid-2025) warrants inquiry into management stability.