OPTIMUM DESIGN AND BUILD SOLUTIONS LTD

Executive Summary

Optimum Design and Build Solutions Ltd exhibits a stable financial position typical of a young micro-entity, with positive working capital and shareholders’ funds indicating good liquidity and solvency. However, the limited scale and lack of profitability data suggest cautious monitoring is necessary to ensure sustainable growth. With proactive financial management and strategic planning, the company’s outlook is promising for continued healthy development.

OPTIMUM DESIGN AND BUILD SOLUTIONS LTD - Analysis Report

Company Number: 14471426

Analysis Date: 2025-07-29 15:23 UTC

Financial Health Assessment of OPTIMUM DESIGN AND BUILD SOLUTIONS LTD

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1. Financial Health Score: B

Explanation:
The company demonstrates a stable financial position with positive net current assets and shareholders' funds, indicating a healthy liquidity buffer and equity base for a micro-entity in its first full financial year. However, the modest scale of fixed assets and relatively tight working capital suggest limited operational scale and potential vulnerability to sudden cash flow shocks. The absence of audit and detailed profit & loss information limits a full diagnostic but overall, the company’s financial "vital signs" are within healthy ranges for a start-up micro business.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	3,143	Small investment in long-term assets; typical for a new micro company.
Current Assets	41,764	Cash and short-term assets available to cover immediate costs.
Current Liabilities	37,972	Short-term obligations; nearly matched by current assets.
Net Current Assets	3,792	Positive working capital indicates the company can meet short-term liabilities.
Total Assets Less Current Liabilities	6,935	Indicates net asset value after covering short-term debts.
Shareholders’ Funds (Equity)	6,935	Reflects owner’s investment and retained earnings; positive and equal to net assets.
Average Employees	1	Small scale operation, manageable but limited capacity.
Company Age	~1 Year	Early stage of operation; financials are initial baseline.

Interpretation:

• The company’s liquidity is "healthy" with current assets slightly exceeding current liabilities, suggesting it has enough short-term resources to cover its immediate debts.
• Positive shareholders’ funds indicate that the company is not insolvent and has a positive net worth.
• Fixed assets are minimal, reflecting a possibly asset-light business model or early stage setup.
• Operating with a single employee suggests limited operational scope but also low overhead costs.

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3. Diagnosis: Financial Health Overview

The financial "symptoms" reflect a young micro company with a stable but cautious financial position:

• Liquidity Condition: The positive net current assets (working capital) are a good sign of liquidity health, meaning the company is unlikely to face immediate cash flow distress. This liquidity is essential for meeting short-term obligations without needing additional financing.

• Solvency Condition: Shareholders’ funds being positive and equal to net assets indicate solvency; the company is not over-leveraged and has a buffer against creditor claims.

• Operational Scale: The limited fixed assets and average employee count of one suggest the company is operating at a small scale, typical for its incorporation stage.

• Profitability and Cash Flow: Not explicitly disclosed. Absence of profit and loss data means the company’s profitability and operational cash flow "vital signs" are unknown. This is a key blind spot in the diagnosis.

• Governance and Control: Full control vested in one director and significant shareholder (Mrs Sheila Sahota), which simplifies decision-making but also concentrates risk.

Overall, the company’s financial health is akin to a young patient showing no immediate signs of distress but requiring regular monitoring as it grows and faces operational challenges.

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4. Recommendations: Steps to Enhance Financial Wellness

1. Improve Financial Reporting:
Consider preparing detailed profit and loss accounts and cash flow statements regularly, even if not required by law. This will provide early warning signs of profitability or liquidity issues.

2. Build Cash Reserves:
Aim to increase net current assets (working capital) to create a stronger liquidity "safety net" that can absorb unexpected expenses or delayed payments.

3. Monitor Debtor and Creditor Cycles:
Develop efficient credit control and payment processes to ensure timely cash inflows and manage outflows prudently.

4. Plan for Growth:
Assess the need for investing in assets or hiring additional staff prudently to support business expansion without overextending financially.

5. Governance Checks:
Although currently controlled by a single director/shareholder, consider implementing internal controls and possibly advisory support to mitigate single-point decision risk.

6. Regular Health Checks:
Schedule periodic financial health reviews, akin to medical check-ups, to track performance trends and respond promptly to any negative symptoms.

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