OZZI BOXES LTD

Executive Summary

Ozzi Boxes Ltd shows a robust financial position for a young micro-entity with strong liquidity and growing equity, indicating a healthy financial state. While stable, the company should focus on scaling operational capacity and enhancing financial controls to support sustainable growth. Maintaining healthy cash flow and prudent investment will be key to future financial wellness.

OZZI BOXES LTD - Analysis Report

Company Number: 14248321

Analysis Date: 2025-07-29 18:39 UTC

Financial Health Assessment of Ozzi Boxes Ltd (As of 31 July 2024)

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1. Financial Health Score: B

Explanation:
Ozzi Boxes Ltd demonstrates solid financial health for a micro-entity in its early years of operation, showing clear improvement in net assets and working capital. The company reports a strong net current asset position and growing shareholders’ funds, indicating good liquidity and capitalization. However, as a young business with limited scale and only one employee, there is room for growth and further strengthening of financial resilience.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	6,456	A modest increase, showing investment in long-term resources—healthy sign for asset base.
Current Assets	51,631	Good liquidity reservoir, mostly likely cash and receivables, supporting daily operations.
Current Liabilities	18,601	Short-term obligations are manageable relative to current assets.
Net Current Assets	33,030	Strong working capital, indicating the company can comfortably cover short-term debts.
Total Assets less Current Liabilities	39,486	Reflects overall asset strength after settling immediate debts.
Net Assets (Shareholders' Funds)	38,386	Indicates accumulated retained earnings and equity; substantial growth from prior year (£11,954).
Average Number of Employees	1	Lean workforce typical for a micro company; potential limitation on scalability.

Vital Signs Interpretation:

• The company’s net current assets are healthy, suggesting a "healthy cash flow" environment where short-term liabilities are well-covered by liquid assets, minimizing liquidity risk.
• The increase in fixed assets implies reinvestment into the business infrastructure, a positive indicator for future capacity.
• Shareholders’ funds growth nearly tripled in one year, a sign of strong retained earnings or capital injection, contributing to a sturdy financial foundation.
• The company's classification as a micro entity means it benefits from simplified filing but may face challenges in accessing larger financing due to its size.

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3. Diagnosis

Ozzi Boxes Ltd presents with the "symptoms of a financially stable and growing micro enterprise." The company’s balance sheet shows no signs of distress such as negative working capital or eroding equity. The steady increase in net assets and working capital indicates effective management of cash and liabilities, akin to a patient whose vital signs are stable and improving.

However, the business is still in its infancy (incorporated July 2022) and operates with minimal staff. This suggests a reliance on a small operational base that could strain capacity if demand surges or unexpected expenses arise. The absence of an audit, while typical for micro entities, means financial controls and reporting might benefit from closer scrutiny as the company grows.

The company’s sector—packaging manufacturing and sales—can be capital and resource intensive, so maintaining liquidity and careful asset management will be critical to sustaining growth and managing market risks.

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4. Recommendations

• Maintain Strong Liquidity: Continue to monitor working capital closely. Ensure cash inflows (receivables) remain healthy and manage payables to avoid liquidity crunches. Consider setting up cash flow forecasting to anticipate funding needs.
• Expand Operational Capacity: Evaluate the feasibility of hiring additional staff or outsourcing to prevent bottlenecks as business scales. This will support sustainable growth and reduce operational risk.
• Strengthen Financial Controls: Although exempt from audit, consider voluntary internal or external review of accounts to enhance confidence among stakeholders and identify any emerging risks early.
• Plan for Growth Investment: Assess opportunities to invest in fixed assets or technology that can improve production efficiency, given the increase in fixed assets already evident.
• Risk Management: Identify potential supply chain or market risks in the packaging sector and develop contingency plans to mitigate impacts on cash flow and profitability.

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