Company Number: 13048719

Analysis Date: 2025-07-29 14:42 UTC

1. Risk Rating: LOW
   Occam Bio Limited demonstrates a sound financial position with positive net assets and net current assets that have grown steadily year-over-year. The company is compliant with filing deadlines, has minimal current liabilities, and maintains a modest cash balance relative to liabilities, supporting its ability to meet short-term obligations.

2. Key Concerns:

• Related Party Receivables Concentration: A significant portion of current assets (£57,315 out of £64,735) comprise amounts owed by the parent company. This concentration risk means liquidity depends heavily on the parent’s financial health and payment practices.
• Limited Operational Scale: With only two employees and low tangible assets, the company appears to have a small operational footprint, which could limit scalability and revenue diversification.
• Modest Cash Reserves: Cash on hand is relatively low (£16,060) compared to total assets, which may constrain the company’s ability to manage unexpected expenses or invest in growth without additional funding.

3. Positive Indicators:

• Strong Net Current Asset Position: Net current assets improved from £53,302 in 2022 to £70,961 in 2023, indicating improved short-term liquidity and working capital management.
• Compliance and Governance: The company is current with all statutory filings including accounts and confirmation statements, suggesting good regulatory compliance and governance discipline.
• Steady Equity Growth: Shareholders’ funds increased from £56,556 to £76,177, reflecting accumulated retained earnings and a strengthening equity base.
• No Audit Requirement and Small Company Status: The company benefits from small company reporting exemptions, reducing administrative burdens and costs.

4. Due Diligence Notes:

• Investigate the nature and terms of the related party balances, including the parent company’s financial strength and payment history, to assess risk concentration and liquidity reliability.
• Review revenue streams and contracts to understand business sustainability given the small employee base and limited fixed assets.
• Confirm the company’s cash flow patterns and whether any external financing or capital injections are planned or required.
• Verify directors’ background and any potential conflicts of interest, given the close relationship with the parent entity.
• Assess lease commitments and other contingent liabilities not detailed in current financials.