Company Number: 14470363

Analysis Date: 2025-07-20 12:24 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Oxalis Design Ltd, incorporated in late 2022, has shown strong growth in net assets and working capital within its first two years of trading. The company’s financials indicate a healthy liquidity position and positive equity build-up, supportive of meeting debt obligations. However, as a very young company with limited trading history and modest share capital (£3,500), some caution is warranted. Credit approval should be conditional on continued monitoring of cash flow trends and receivables collection, given the significant increase in debtors and current liabilities in the latest period.

2. Financial Strength:
   The company’s net assets rose sharply from £7,589 at end 2023 to £77,904 at end 2024, driven by increased fixed assets (£7,257 to £21,752) and a substantial rise in current assets (£3,731 to £105,404). Shareholders’ funds increased commensurately (£4,589 to £74,404), indicating retained earnings or capital infusion. The balance sheet shows a solid equity base relative to liabilities, and net current assets improved from £332 to £56,152, reflecting strong working capital growth. The increase in taxation and social security creditors (£781 to £43,969) should be investigated to ensure no contingent tax liabilities or payment timing issues.

3. Cash Flow Assessment:
   Cash at bank increased significantly from £1,731 to £48,936, improving liquidity. Debtors grew markedly to £56,468, which while supporting revenue growth, may present collection risk. Current liabilities rose to £49,252, mainly due to taxation and social security obligations. The net current asset position is positive, signaling good short-term financial health. The company appears able to meet short-term debts from current assets but should maintain focus on efficient debtor management and timely payment of tax liabilities to avoid liquidity strain.

4. Monitoring Points:

• Receivables aging and collection efficiency, given the rapid increase in debtors.
• Taxation and social security creditor balances to confirm no overdue or disputed amounts.
• Cash flow from operating activities to ensure ongoing positive liquidity.
• Continued growth in fixed assets and working capital in line with business expansion plans.
• Directors’ stewardship given the company’s young age and evolving management team.