Company Number: 12501898

Analysis Date: 2025-07-20 12:23 UTC

1. Credit Opinion: CONDITIONAL APPROVAL

Oscar James Partners Ltd is a micro-entity operating in management consultancy since 2020. The company is currently active with no overdue filings, showing compliance and governance discipline. However, the company has reported negative net assets and shareholders’ funds for the last three years, indicating accumulated losses or capital erosion. Despite this, net current assets have improved significantly in the latest year due to increased current assets and reduced short-term creditors, reflecting some improvement in short-term liquidity. The company's ability to service debt is limited by its negative equity position and ongoing net liability, which warrants caution. Credit approval should be conditional on continued close monitoring of liquidity, profitability, and capital structure.

2. Financial Strength:

• The balance sheet shows fixed assets of £8,493 (2024) down from £10,385 (2023), indicating some asset disposals or depreciation.
• Current assets have more than doubled from £8,351 (2023) to £19,646 (2024), improving liquidity.
• Current liabilities have decreased from £18,583 (2023) to £10,495 (2024), improving working capital.
• Net current assets improved to £9,151 (2024) from negative £9,637 (2023).
• However, long-term creditors increased to £16,425 (2024) from £14,306 (2023), and provisions and accruals remain.
• Total net liabilities stand at £2,007, worsening from £1,007 the prior year, reflecting overall capital erosion.
• The negative shareholders’ funds reflect accumulated losses or capital contributions below liabilities.

3. Cash Flow Assessment:

• Cash balance as of 2023 was £8,351; 2024 cash is embedded within current assets but exact cash not separately disclosed.
• The significant increase in current assets and reduction in short-term creditors suggests improved working capital management.
• Average employee count is 2, implying low fixed overheads.
• No audit was required, but the directors acknowledge responsibility for accounts preparation.
• The company’s liquidity position is improving, but negative equity and long-term liabilities may constrain access to external finance.
• Cash flow from operations is not disclosed, so more detail is needed to fully assess operational cash generation.

4. Monitoring Points:

• Monitor quarterly or biannual management accounts for cash flow stability and profitability trends.
• Watch for further reduction in long-term liabilities to strengthen the capital base.
• Track debtor days and creditor days to ensure working capital remains positive.
• Review any planned capital injections or restructuring to improve net asset position.
• Keep an eye on director conduct and any changes in ownership or control.
• Assess impact of external economic factors on consultancy demand and payment behavior of clients.