NATIONAL UTILITY HUB LTD

Executive Summary

National Utility Hub Ltd is currently in a financially distressed position with significant net liabilities and increasing long-term debt, primarily owed to related parties. While short-term liquidity appears manageable and statutory compliance is sound, the company’s solvency risk is high, warranting thorough investigation of debt terms, operational viability, and governance practices before investment consideration.

NATIONAL UTILITY HUB LTD - Analysis Report

Company Number: 13153900

Analysis Date: 2025-07-20 16:27 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk, with net liabilities of approximately £2.9 million as of the 2023 year-end. The large amount of long-term creditors exceeding £3 million and persistent negative shareholders’ funds indicate an inability to cover obligations from assets. This financial structure suggests high risk to creditors and investors.

2. Key Concerns:

• Solvency and Net Liabilities: The company has net liabilities of nearly £2.9 million, worsening from a negative equity position of about £1.4 million the prior year. This indicates ongoing losses or accumulated deficits that threaten long-term viability.
• High Long-Term Creditors: Creditors falling due after more than one year increased substantially from £1.6 million to over £3 million, suggesting reliance on external funding and potentially onerous debt servicing burdens.
• Related Party Transactions and Concentration: Significant creditor balances are owed to related parties (Majestic Securities Ltd and The Monarch Partnership Limited), raising potential concerns about financial independence and governance, as well as the sustainability of financing arrangements.

3. Positive Indicators:

• Current Assets vs. Current Liabilities: The company has positive net current assets (£173,870), with cash balances around £217,666, which may support short-term liquidity needs.
• No Overdue Filings: The company’s accounts and confirmation statements are filed on time, indicating compliance with statutory requirements and basic regulatory governance.
• Active Website and Market Presence: The company maintains an active business website and phone contact, suggesting ongoing commercial operations in the business energy sector.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors, particularly the related party loans from Majestic Securities Ltd and The Monarch Partnership Limited, including repayment schedules and interest obligations.
• Review recent and projected profitability trends and cash flow forecasts to assess the company’s ability to service debt and improve equity position.
• Clarify the extent of operational activity given the increase in average employees from 0 to 59, and confirm that the business model is sustainable in its current form.
• Examine governance practices around related party transactions to ensure transparency and arm’s length dealing.
• Assess contingent liabilities or provisions not fully detailed in abridged accounts that may impact future financial stability.