ORACLE SURVEYORS LTD

Executive Summary

ORACLE SURVEYORS LTD is a micro-entity showing asset growth and operational stability but currently exhibits liquidity stress evidenced by negative working capital in 2025. While solvent, the company must improve cash flow management and control short-term liabilities to avoid potential financial strain. With proactive financial discipline, the company has a fair outlook for continued growth and stability.

ORACLE SURVEYORS LTD - Analysis Report

Company Number: 14074015

Analysis Date: 2025-07-29 19:10 UTC

Financial Health Assessment for ORACLE SURVEYORS LTD

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1. Financial Health Score: C

Explanation:
ORACLE SURVEYORS LTD is a micro-entity showing modest growth and stability since incorporation in 2022. The company has increased its fixed and current assets significantly in the latest financial year, indicating investment and growth. However, the large increase in current liabilities relative to current assets in 2025 results in a negative working capital (net current assets), which is a symptom of potential liquidity stress. Overall, the financial health is fair but shows warning signs to be monitored closely.

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2. Key Vital Signs

Metric	2025 (£)	2024 (£)	Interpretation
Fixed Assets	50,945	796	Sharp increase implies asset investment, possibly equipment or property for operations.
Current Assets	44,830	24,190	Increased cash or receivables, positive sign of operational growth.
Current Liabilities	91,446	23,510	Large rise indicates increased short-term obligations; could stress liquidity.
Net Current Assets (Working Capital)	-46,616	680	Negative in 2025, signaling a liquidity symptom of distress; company may struggle to pay short-term debts.
Total Assets Less Current Liabilities	4,329	1,476	Positive but low net assets; company is solvent but with thin equity buffer.
Net Assets / Shareholders' Funds	4,329	1,476	Reflects retained earnings and capital; growth is steady but remains low.
Average Employees	4	4	Stable workforce size, indicating operational consistency.

Additional Notes:

• The company is categorized as Micro, so filings and financial complexity are minimal.
• Directors are also majority shareholders, suggesting control is closely held.

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3. Diagnosis

• Strengths:

  • Asset growth (both fixed and current) suggests operational expansion or investment in capacity.
  • Positive net assets demonstrate continued solvency.
  • Stable employee numbers indicate no operational downsizing.

• Symptoms of Distress:

  • The sharp increase in current liabilities far outpaces current assets, leading to negative working capital in 2025. This is akin to a patient having a “lab test” showing low blood pressure—an early warning sign requiring attention.
  • Negative net current assets mean the company may face short-term cash flow challenges, potentially delaying payments or relying on external financing.
  • Equity remains low relative to liabilities, meaning limited buffer against financial shocks.

• Underlying Issues:

  • The company may be financing growth through short-term credit or delayed payables.
  • Without improved cash flow management, risk of liquidity crunch exists.
  • The balance sheet structure indicates the company is still in a growth phase but needs to manage its “financial pulse” more carefully.

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4. Recommendations

To improve financial wellness and ensure sustainable operations, ORACLE SURVEYORS LTD should:

1. Improve Liquidity Management:

   • Tighten credit control to accelerate receivables collection.
   • Negotiate longer payment terms with suppliers to better align cash inflows and outflows.
   • Monitor cash flow forecasts weekly to anticipate and manage cash shortfalls.

2. Control Current Liabilities Growth:

   • Avoid over-reliance on short-term borrowing or trade credit.
   • Explore options for longer-term financing if investment in fixed assets continues.

3. Strengthen Equity Base:

   • Consider retaining more profits within the company rather than distributions.
   • Possibly inject additional equity from shareholders if necessary to build a stronger capital buffer.

4. Operational Efficiency:

   • Review operating expenses to identify cost-saving opportunities without impacting service quality.
   • Maintain workforce stability but ensure productivity aligns with revenue growth.

5. Regular Financial Health Monitoring:

   • Conduct quarterly financial reviews focusing on liquidity ratios and working capital.
   • Use financial dashboards to detect early symptoms of distress.

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Medical Analogy Summary:

ORACLE SURVEYORS LTD shows signs of a growing but stressed patient. Asset growth resembles a strengthening heart muscle, but the negative working capital is akin to low blood pressure—an early symptom that, if untreated, could lead to more serious financial ailments. With careful management of cash flow and liabilities, the company can regain a healthy financial pulse and sustain its growth trajectory.

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