OCERE LIMITED
Company number 06858052 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Risk Assessment: OCERE LIMITED
1. Risk Rating: MEDIUM
Justification: While the company demonstrates strong solvency with net assets of £3.78M and minimal leverage (liabilities represent only ~7% of total assets), significant concerns around debtor concentration, cash flow volatility, a recent director resignation, and an overdue confirmation statement elevate this above a LOW rating. The business appears fundamentally sound but requires scrutiny on several fronts.
2. Key Concerns
Concern 1: Extreme Debtor Concentration
Debtors totalled £3,711,497 as at 31 December 2024, representing approximately 91.5% of total assets. This is an exceptionally high concentration in a single current asset line. For an advertising/SEO agency, this level of debtor balance raises questions about: - Revenue recognition practices and whether income is being recognised before cash collection - Credit risk exposure and collectibility of these balances - Potential related-party receivables, particularly given the corporate PSC (Groupe Jvweb) which may be a major client or trading partner - Working capital quality — the business appears asset-rich but may struggle to convert debtors to cash
The debtors balance has grown from approximately £2.1M (2022) to £3.7M (Dec 2024), a 76% increase, which significantly outpaces the growth in net assets.
Concern 2: Cash Flow Volatility and Apparent Deterioration
Cash at bank has shown significant fluctuation: - March 2022: £1,512,184 - March 2023: £946,025 - March 2024: £111,876 - December 2024: £346,355
The 93% decline in cash between March 2022 and March 2024 is striking, even accounting for the change in accounting reference date. While there has been some recovery to £346k, the company now holds less than 10% of its asset base in cash, with the remainder predominantly tied up in debtors. This raises questions about liquidity management and whether the business is generating sufficient operating cash flow.
Concern 3: Director Resignation and Governance Uncertainty
name shown to subscribers resigned as director on 27 February 2026. Given that he is also listed as a Person with Significant Control (owning 50-75% of shares and voting rights), this resignation warrants investigation. Key questions include: - Was the resignation voluntary or compelled? - Does this signal a disagreement about the direction of the company? - Is there a connection between his resignation and the recent change in accounting reference date (from March to December year-end)? - The remaining director, Jonathan name shown to subscribers (French national), now appears to be the sole director, which concentrates management risk
Additionally, the confirmation statement is overdue (due 8 April 2026, not yet filed), which is a compliance concern and may indicate administrative lapses following the director change.
3. Positive Indicators
Strong Balance Sheet and Solvency
The company has consistently grown net assets from £275k (2016) to £3.78M (Dec 2024), representing approximately 13x growth over 8 years. Liabilities are modest at £284,502 against total assets of £4.06M, giving a very comfortable debt-to-assets ratio. The company is clearly solvent and has substantial equity cushion.
Audited Financial Statements
The accounts are audited by Randall & Payne LLP, a Cheltenham-based firm, with an unqualified (ordinary) audit opinion noted. This provides a level of assurance over the financial statements that is not available for many small companies filing abbreviated accounts.
Established and Growing Business
Incorporated in 2009, the company has a 16-year track record. The website indicates over 200 active clients in digital marketing/SEO services, suggesting a diversified revenue base. The consistent growth in shareholders' funds (from retained earnings accumulation) indicates profitable operations over the long term.
Low Leverage
Total liabilities of £284,502 against net assets of £3.78M means the company is predominantly equity-financed. There is minimal financial risk from debt obligations. Current liabilities appear manageable relative to the asset base.
4. Due Diligence Notes
Priority Investigations:
a) Debtor Composition and Ageing Request a detailed aged debtor analysis. Specifically investigate: - What percentage of debtors are related to Groupe Jvweb or other connected parties? - What is the average debtor days figure? Has it been increasing? - Are there any provisions for bad debts, and if not, why not given the size of the debtor book? - What is the historical bad debt experience?
b) Cash Flow Reconciliation Obtain cash flow statements or reconstruct them from the balance sheet movements. The significant decline in cash concurrent with rising debtors suggests the business may not be converting revenue to cash efficiently. Understand: - Where the £1.4M cash outflow between 2022-2024 was deployed - Whether dividend payments to PSCs explain part of the cash reduction - Operating cash flow vs. accounting profit trends
c) Related Party Transactions with Groupe Jvweb Groupe Jvweb holds 75%+ of shares and voting rights. Investigate: - Is Groupe Jvweb also a major customer or supplier? - Are there inter-company balances included in debtors or creditors? - What is the nature of the relationship — is this a subsidiary of a larger French group? - Are transfer pricing arrangements at arm's length?
d) Director Resignation Context Seek clarification on: - The circumstances of name shown to subscribers's resignation - Whether his PSC status will change following the resignation - Succession planning and board composition going forward - Any restrictive covenants or severance arrangements
e) Accounting Reference Date Change The company changed its year-end from 31 March to 31 December (resulting in a 9-month period for 2024). Understand the rationale — was this driven by the new corporate parent (Groupe Jvweb) to align with group reporting, or another reason?
f) Overdue Confirmation Statement Confirm whether the overdue confirmation statement has since been filed and whether there have been any changes to PSC register following the director resignation.