OPUS RESTRUCTURING LLP
Company number OC381479 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Here is the financial health assessment for Opus Restructuring LLP.
📊 1. Financial Health Score: B+ (Good)
The company has staged a remarkable recovery from critical distress. In medical terms, this is a patient who was in the intensive care unit two years ago and has now been moved to a general ward. Vital signs are strong, but a full recovery is not yet guaranteed. The score is kept from an ‘A’ due to a volatile recent history and a reliance on a dramatic single-year revenue spike.
🩺 2. Key Vital Signs (Year Ended 30 April 2023)
| Metric | Reading | Interpretation |
|---|---|---|
| Revenue Growth | +100% (from £5.2M to £10.3M) | Feverish but healthy growth. This is a massive acceleration, suggesting a strong market demand or a significant new contract win. |
| Cash Reserves | £1.49M (up from £137k) | Excellent. This is the company's "platelet count"—a huge improvement from near-anemic levels in 2022. Healthy cash flow is the cornerstone of survival. |
| Operating Profit Margin | 45.5% (from 5.8%) | Excellent. The firm turned every £1 of revenue into £0.45 of profit, up from just £0.06. This shows operational leverage is working powerfully. |
| Net Current Assets (Working Capital) | £100,625 (up from -£96,029) | Critical improvement. The company was technically illiquid last year (current liabilities > current assets). It now has a small positive buffer, but this is still slender. |
| Debtors (Money owed to the firm) | £738k (down from £1.49M) | Good. The company is collecting its bills faster. A 50% reduction in outstanding debtors is a sign of better credit control. |
| "Other Creditors" | £1.98M (up from £168k) | ⚠️ Red Flag. This massive, unexplained increase in short-term liabilities needs immediate investigation. It could be member drawings or a tax liability, but it is a large unknown. |
🔍 3. Diagnosis: Convalescent After Financial Anemia
The Condition: The LLP suffered from chronic financial anemia between 2018 and 2022, characterized by negative net assets, dangerously low cash, and persistent losses. It was effectively operating on a "life support" of member loans.
The Turnaround: In the 2023 financial year, the firm experienced a sudden and profound recovery. Revenue doubled, and the business swung from a loss of £717k to a profit of £2.79M available for members. The balance sheet healed significantly: net assets went from zero (or negative after member interests) to a positive £206k.
Underlying Symptoms to Monitor: - Volatility: The business history shows extreme swings. This is not a stable, slow-growth operation. The core question is: Is this growth sustainable, or is it a one-off project? - Working Capital Fragility: While positive, net current assets of just £100k against liabilities of £3.3M is a very thin margin. A small shock (e.g., a debtor not paying) could push the company back into a negative position. - The "Unknown" Liability: The £1.98M in "Other Creditors" is a diagnostic mystery. This requires immediate clarification.
💊 4. Recommendations for Improved Financial Wellness
- Stress Test the Balance Sheet. Run a severe downside scenario: what happens if revenue drops 30% or a major client delays payment for 90 days? The current working capital is too thin to absorb a shock.
- Diversify the Revenue Base. If the doubling of turnover came from one or two large contracts, the business is risk-concentrated. Actively seek to broaden the client portfolio to avoid a "relapse" if a major client leaves.
- Build a Cash Reserve Buffer. A healthy target is 3-6 months of fixed operating costs. Even with £1.5M in cash, the firm should have a clear policy on how much cash must always remain in the business before any member drawings.
- Investigate and Formalize "Other Creditors." This line item is the largest liability. The finance team must provide a breakdown of this £1.98M immediately. If it is member drawings, a formal profit-sharing policy should be documented. If it is trade creditors, payment terms need to be reviewed.
- Maintain Strong Credit Control. The improvement in debtor collection is excellent. Do not relax this discipline. Continue to chase receivables aggressively to keep the cash cycle healthy.