Company Number: 15221676

Analysis Date: 2025-07-29 16:55 UTC

1. Credit Opinion: DECLINE
   OUBAFITT LTD is a newly incorporated micro-entity with a net liability position of £6,469 at its first year-end, indicating negative net assets and working capital. The company’s current liabilities exceed current assets by a significant margin, suggesting it lacks the short-term liquidity needed to meet its obligations. Given the absence of historical profitability or cash flow data, combined with negative equity and limited operational history, the credit risk is high. Without evidence of financial support or improving cash flow, extending credit would be imprudent at this stage.

2. Financial Strength:
   The balance sheet reveals net current liabilities of £6,469 and net liabilities overall, reflecting negative shareholders’ funds. This weak financial structure suggests the company has funded its start-up operations through creditors rather than capital or retained earnings. While it currently operates with only two employees and minimal assets (£3,280 in current assets), it has no fixed assets to support borrowing capacity. The lack of positive net assets undermines its financial resilience and ability to absorb shocks.

3. Cash Flow Assessment:
   Current liabilities of £9,749 compared to current assets of £3,280 indicate a liquidity shortfall, raising concerns about the company’s ability to meet short-term debts and operational expenses. The negative working capital position implies reliance on creditor financing or additional capital injections to sustain operations. Without detailed cash flow statements, it is unclear how cash is being generated, but the reported figures suggest cash flow pressures.

4. Monitoring Points:

• Improvement in net current assets and shareholders’ funds in subsequent filings.
• Evidence of cash flow generation or capital injections to reduce reliance on creditors.
• Timely filing of accounts and confirmation statements to gauge ongoing compliance and management discipline.
• Operational progress in physical well-being and sports activities sectors to assess revenue growth potential.
• Any changes in director or PSC status that might impact governance and financial stewardship.