OXFORD DATA TECHNOLOGIES LIMITED

Executive Summary

Oxford Data Technologies Limited, a young private limited company, is currently facing significant financial challenges characterized by negative working capital and shareholders' funds. Immediate actions focusing on improving cash flow, controlling costs, and securing additional capital are critical to reversing its fragile financial condition and setting the foundation for future stability and growth.

OXFORD DATA TECHNOLOGIES LIMITED - Analysis Report

Company Number: 14383330

Analysis Date: 2025-07-20 15:57 UTC

Financial Health Assessment: OXFORD DATA TECHNOLOGIES LIMITED

---

1. Financial Health Score: D

Explanation:
The company currently exhibits significant financial distress, primarily due to negative net current assets and shareholders’ funds. The negative working capital and accumulated losses indicate liquidity and solvency challenges. This score reflects an urgent need for financial restructuring and operational improvements to restore health.

---

2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	5,307	Very low cash and liquid assets, indicating limited short-term resources.
Current Liabilities	30,433	Overwhelming short-term debts and obligations.
Net Current Assets	-25,126	Negative working capital signals inability to cover short-term debts—symptom of cash flow distress.
Shareholders’ Funds (Equity)	-25,226	Negative equity shows accumulated losses exceed invested capital—sign of insolvency risk.
Number of Employees	2	Small team, typical of a micro or small business.
Account Category	Total Exemption Full	Small company with simplified filing, limiting detailed financial disclosures.

Interpretation:

• The company’s cash reserves are insufficient to meet immediate liabilities, suggesting a "heart rhythm" problem where liquidity is inadequate.
• Negative equity is a "chronic symptom" indicating the company has been operating at a loss or has absorbed significant expenses, eroding net worth.
• The absence of fixed assets and reliance on cash only further restricts financial flexibility.
• The small employee base suggests limited operational scale, possibly reflecting an early-stage or startup phase.

---

3. Diagnosis

The financial "symptoms" paint a clear picture of a company in the early stages of financial distress:

• Liquidity Crisis: The negative net current assets mean the company does not have enough liquid resources to cover its short-term obligations. This is a key "vital sign" indicating a risk of default on payments if cash inflow does not improve promptly.

• Solvency Concerns: Negative shareholders’ funds imply that the company’s liabilities exceed its assets, a sign that it is "underweight" financially and could face insolvency if losses continue.

• Early Development Stage: Incorporated in late 2022, the company is still very young, which may explain the initial losses and cash constraints. However, without a clear path to revenue generation or funding, these "symptoms" could worsen.

• Limited Financial Buffer: The absence of fixed assets and minimal cash reserves reduce the ability to secure financing or weather short-term downturns.

Overall, the company is in a fragile financial state akin to a patient showing signs of severe dehydration and weakness—urgent intervention is necessary to stabilize.

---

4. Recommendations

To improve financial wellness, the company should take the following "treatment" steps:

• Boost Cash Inflows:

  • Accelerate revenue generation through enhanced sales, marketing, or new contracts.
  • Consider short-term financing options (e.g., director loans, overdrafts) to cover immediate liabilities.

• Cost Control:

  • Review and reduce operational expenses where possible to preserve cash.
  • Delay or renegotiate payment terms with creditors to ease cash flow pressure.

• Capital Injection:

  • Seek additional equity investment from existing shareholders or new investors to restore positive net assets.
  • Explore grants or government support for small businesses in technology sectors.

• Financial Monitoring:

  • Implement rigorous cash flow forecasting and management to detect and address liquidity issues early.
  • Prepare regular financial reports focusing on working capital and solvency ratios.

• Strategic Planning:

  • Develop a clear business plan highlighting pathways to profitability and sustainable growth.
  • Consider partnerships or mergers if appropriate to strengthen market position and resources.

• Professional Advice:

  • Engage financial advisors or turnaround specialists to guide restructuring and growth strategies.

---

Executive Summary