OVENS-CARE LTD

Executive Summary

Ovens-care Ltd is a recently established company with a clean compliance record and positive net assets primarily funded by cash injections. The company shows adequate liquidity to meet current short-term obligations but lacks trading history and operating cash flow, warranting cautious credit approval with close monitoring of financial development and cash flow generation. Overall, the company presents a low risk of default in the short term but requires further performance data to support increased credit exposure.

OVENS-CARE LTD - Analysis Report

Company Number: 14573009

Analysis Date: 2025-07-29 21:04 UTC

1. Credit Opinion: APPROVE with caution.
   Ovens-care Ltd is a newly incorporated private limited company with a clean status and no overdue filings. The company’s financials show a positive net asset position and no reported liabilities beyond short-term taxes and social security. While the company has minimal operational history (less than one year) and no employees, its current liquidity and shareholders’ funds are sufficient to cover current liabilities, indicating a low risk of immediate default. Approval is recommended for modest credit facilities with regular monitoring due to the lack of trading history and limited financial track record.

2. Financial Strength:
   The balance sheet as at 31 January 2024 shows net assets of £4,155, entirely composed of net current assets, primarily cash of £5,138. There are no fixed assets or reported long-term liabilities. The company is in a strong equity position relative to its size and obligations, indicative of a stable financial footing for a start-up entity. However, the absence of tangible fixed assets and limited capital base constrain the company’s financial strength and borrowing capacity.

3. Cash Flow Assessment:
   Cash on hand of £5,138 exceeds current liabilities of £983, resulting in positive net current assets of £4,155. This suggests the company has adequate liquidity to meet immediate short-term obligations. Nonetheless, the company has no reported employees or trading income yet, so operating cash flows remain untested. The cash position likely reflects initial capital injection rather than generated revenue, which requires attention in future cash flow assessments.

4. Monitoring Points:

• Track development of revenue streams and profitability in subsequent accounts.
• Monitor cash flow trends and working capital sufficiency as operating activities commence.
• Watch for any increase in short-term liabilities or overdue filings.
• Assess management’s ability to scale operations and maintain liquidity.
• Review any changes in ownership or director appointments that could impact governance.