OYAMILENU SIMPLIFIED SOLUTIONS LTD

Executive Summary

OYAMILENU SIMPLIFIED SOLUTIONS LTD is a newly formed micro-entity showing early symptoms of financial distress with negative working capital and equity. Immediate focus on improving liquidity and controlling costs is essential to stabilize the company’s financial health. With timely action, the company can transition from startup losses to a sustainable financial footing.

OYAMILENU SIMPLIFIED SOLUTIONS LTD - Analysis Report

Company Number: 15471954

Analysis Date: 2025-07-29 19:48 UTC

Financial Health Assessment: OYAMILENU SIMPLIFIED SOLUTIONS LTD

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1. Financial Health Score: D

Explanation:
The company is in its infancy (incorporated Feb 2024) and operates as a micro-entity with minimal financial history. The key vital sign—net current assets—is negative (£-227), indicating liabilities exceed current assets. This points to liquidity strain, a symptom of financial distress for a young company. While the financial figures are small, the negative net position and small asset base reduce confidence in immediate financial stability. The company is not overdue on filings, which is positive compliance-wise.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	353	Low cash and receivables; limited short-term resources
Current Liabilities	580	Obligations due within one year exceed assets
Net Current Assets	-227	Negative working capital; a key symptom of distress
Total Assets Less Current Liabilities	-227	Reflects negative net assets; equity is negative
Shareholders’ Funds	-227	Negative equity suggests initial losses or capital deficit
Employees	2	Small team consistent with micro-entity status

Additional Notes:

• The company is active, compliant with filings, and headed by two directors with significant share control.
• The business engages in IT consultancy, software development, management consultancy, and employment placement activities.
• Negative net assets in a first-year micro company often reflect startup costs exceeding initial capital or early operational losses.

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3. Diagnosis

The company exhibits the classic “symptom of distress” in the form of negative net current assets and negative shareholders’ funds. This implies that short-term liabilities exceed short-term assets, creating liquidity challenges. The negative equity suggests the company has incurred expenses or obligations beyond its initial capital injection. This situation is not uncommon in startups but requires careful monitoring.

The “vital signs” indicate the company currently lacks healthy cash flow and sufficient working capital to cover immediate debts. Without adequate liquidity, the company risks operational disruptions or creditor pressure. The presence of two employees and active directors is positive, but the business must generate sufficient revenue or capital injections soon to stabilize.

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4. Recommendations

To improve financial wellness and avoid worsening symptoms, the company should:

• Increase Working Capital: Consider capital injection from shareholders or secure short-term financing to eliminate the negative net current assets.
• Cash Flow Management: Closely monitor cash inflows and outflows; delay non-essential expenditures.
• Revenue Growth: Focus on client acquisition in core consultancy and software services to generate operating cash flow.
• Cost Control: Maintain tight control on fixed and variable costs to avoid further losses.
• Regular Financial Reviews: Implement monthly financial health checks to detect early signs of distress.
• Engage Advisors: Seek guidance from financial professionals experienced in startups to optimize funding and cash management.

Early intervention is critical to reverse the negative equity and establish a healthy cash flow baseline for sustainable growth.

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