Company Number: 13127690

Analysis Date: 2025-07-20 13:22 UTC

1. Credit Opinion: DECLINE

Osasil Limited presents significant credit risk due to its persistent negative net asset position, increasing liabilities, and very limited liquidity. The company’s net liabilities worsened from -£28,925 in 2024 to -£123,611 in 2025, indicating declining financial health. Its large long-term liabilities (£2.22m) far exceed its fixed assets (£2.09m), and current assets are minimal (£13k) against current liabilities exceeding £2.2m, undermining short-term debt servicing ability. The absence of employees and lack of profitability history suggest limited operational cash flow generation. Given these factors, the company's capacity to meet loan obligations is questionable without external support or equity injection.

2. Financial Strength:

The balance sheet shows a weak financial position. Fixed assets remained constant at about £2.09m over the last three years, but net assets turned negative, reflecting accumulated losses or liabilities growth. The company’s current assets are scarce (£13k in 2025) relative to current liabilities (£2.22m), though reported net current assets are positive (£7k), the figures in the accounts document show current creditors within one year as only £6,389 which conflicts with the summary data stating current liabilities at £2.2m — likely the £2.2m refers mainly to long-term debt. The substantial long-term creditors indicate high leverage and potential solvency concerns. Minimal share capital (£100) and negative shareholders’ funds highlight poor equity cushion.

3. Cash Flow Assessment:

With no employees and a micro-entity filing, cash flow details are sparse. The fall in current assets from £47.7k in 2024 to £13.4k in 2025 signals deteriorating liquidity. The company’s ability to generate operational cash flow appears limited given the nature of its business (real estate letting) and lack of earnings data. The high level of creditors due after more than one year suggests significant financing obligations that require consistent cash inflows. Without evidence of rental income or other revenue streams, cash flow risk is high.

4. Monitoring Points:

• Watch the trend in net assets and shareholder funds to detect any further erosion.
• Monitor liquidity ratios, especially current ratio and quick ratio, to assess short-term payment capability.
• Review any changes in long-term liabilities and their servicing terms.
• Track incoming rental or operating income and operating expenses to establish cash flow sufficiency.
• Monitor director changes and any related-party transactions, given the small management team.
• Confirm future account filings and any audit reports for warnings or qualifications.