OAKFIELDS HOMES LIMITED

1. Risk Rating: MEDIUM

The company is active, not in any insolvency process, and its statutory filings are currently up to date. Reported net assets are positive at £523,288. However, the business was incorporated only in October 2024, has a single 15-month accounting period on file, holds minimal cash (£8,609) relative to creditors due within one year (£543,772), and relies heavily on a related party debtor balance that exceeds total net assets. The accounts are filleted and exclude the profit and loss account, which limits assessment of operating profitability and cash generation.

2. Key Concerns

• Liquidity strain: Cash at bank and in hand is £8,609, while creditors falling due within one year total £543,772, including £328,607 of trade creditors and £168,274 of taxation and social security. The cash position appears thin relative to near-term obligations.
• Related party debtor concentration: The accounts disclose that £633,984 is owed by a company under common control and is included within other debtors. This balance is larger than the company’s reported net assets of £523,288 and represents the majority of total debtors (£864,406). Recoverability of this balance is a material solvency consideration.
• Limited financial track record: Incorporated on 3 October 2024, the company has only one period of accounts (to 31 December 2025). The accounts are filleted under the small companies regime and do not include a profit and loss account, so revenue, margins, and operating cash flow trends cannot be assessed from the available data.

3. Positive Indicators

• Shareholders’ funds and net assets are both positive at £523,288.
• Accounts and confirmation statement filings are not overdue; the company is in active status with no insolvency proceedings.
• The balance sheet includes tangible fixed assets of £73,694 and work in progress of £194,500, indicating an operational base in domestic construction.

4. Due Diligence Notes

• Obtain the full profit and loss account (not delivered with the filleted accounts) to assess turnover, gross margin, and operating results for the period from incorporation to 31 December 2025.
• Verify the terms, security, and recoverability of the £633,984 related party debtor, including the financial position of the entity under common control.
• Review aged debtor and aged creditor listings to confirm collection periods and identify any payment pressures with trade suppliers or tax authorities.
• Request a 12-month cash flow forecast given the low cash balance and significant near-term creditor obligations.
• Clarify the composition of “other creditors” (£35,005) and confirm the timing of taxation and social security liabilities.
• Confirm all charges and security interests; hire purchase obligations of £67,611 are disclosed as secured against specific assets.