Company Number: 12776222

Analysis Date: 2025-07-20 13:32 UTC

1. Credit Opinion: DECLINE
   OZCAN LIMITED exhibits weak liquidity and negative working capital for the latest two financial years, with net current liabilities increasing to £1,830 at 31 October 2024 from £608 in 2023. Despite being active and filing accounts on time, the company’s ability to meet short-term obligations is questionable. The balance sheet shows very low net assets (£141) and minimal share capital (£100), which indicates a fragile equity base. The increase in current liabilities, mainly taxation and social security costs, without a corresponding rise in current assets or cash reserves, suggests cash flow pressure. The company’s business activities (other service activities and educational support) may be somewhat discretionary, adding to risk in an economic downturn. No evidence of significant external funding or strong management capital injection is apparent to improve the financial position. Given these factors, extending credit facilities without stringent conditions would be high risk.

2. Financial Strength:
   The balance sheet shows fixed assets increasing from £918 to £1,971, indicating some investment in tangible assets. However, current assets remain very low (£1,005), composed entirely of cash, with no debtors recorded in 2024 (a reversal from previous years). Current liabilities have more than doubled, largely due to taxation and social security liabilities (£2,483). Net current liabilities of £1,830 imply that short-term debts exceed liquid assets significantly. Shareholders’ funds have declined from £310 in 2023 to £141 in 2024, reflecting accumulated losses or distributions exceeding profits. Overall, the financial structure is weak with minimal equity buffer and liquidity shortfall.

3. Cash Flow Assessment:
   Cash at bank increased slightly from £416 in 2023 to £1,005 in 2024, but this is insufficient to cover the current liabilities of £2,835. The absence of debtors in 2024 suggests possible collection issues or changes in revenue recognition. The company’s net current liabilities position points to working capital constraints and potential reliance on director loans or external funding to meet obligations. Payment of increasing tax and social security liabilities may strain cash flow further. No profit and loss details are provided, but declining net assets imply operating losses or distributions. Liquidity risk is high.

4. Monitoring Points:

• Monitor timely payment of tax and social security liabilities to avoid enforcement action.
• Track cash flow closely, especially cash conversion cycle and debtor collection (if any reappears).
• Watch for any director or shareholder injections of capital or loans to support liquidity.
• Review future trading performance and profitability once profit and loss data is available.
• Observe any changes in creditor terms or supplier relationships that could impact working capital.