Company Number: 13526000

Analysis Date: 2025-07-20 17:46 UTC

1. Risk Rating: HIGH
   UA Estates Limited exhibits significant solvency and liquidity concerns, evidenced by persistent net current liabilities and minimal shareholder funds relative to substantial long-term creditors. The company’s financial structure suggests elevated risk in meeting short-term obligations.

2. Key Concerns:

• Liquidity Risk: Current assets (£4,639) are markedly insufficient to cover current liabilities (£80,052), resulting in net current liabilities of approximately £75,413 as of the latest accounts, indicating cash flow constraints.
• High Level of Long-Term Debt: Creditors due after more than one year stand at £195,050, which heavily outweighs the company’s net assets (£4,635), suggesting a leveraged position that could impair financial flexibility.
• Minimal Equity and Profit & Loss Transparency: Shareholders’ funds are very low and have only marginally increased over the years. The absence of profit and loss information limits analysis of operational profitability and sustainability.

3. Positive Indicators:

• Stable Fixed Asset Base: Fixed assets have remained constant at £275,098 over the years, indicating asset stability that may support ongoing operations or provide collateral.
• No Overdue Filings: The company is current with both accounts and confirmation statement filings, indicating compliance with statutory requirements and no immediate governance red flags.
• Experienced and Stable Board: Four directors have been in place since incorporation, with no records of director disqualifications, suggesting stable governance at the management level.

4. Due Diligence Notes:

• Examine Nature and Terms of Long-Term Creditors: Clarify creditor identities, repayment schedules, and covenants to assess refinancing or default risk.
• Request Profit and Loss Accounts or Management Accounts: Since P&L is excluded from micro-entity filings, obtaining internal financials could provide insight into cash flow and profitability trends.
• Assess Operational Cash Flow and Business Model Viability: Investigate income streams, lease terms, and business plans to evaluate if the company can generate sufficient cash to service liabilities.
• Review Directors’ Strategy and Capital Injection Plans: Understand plans to improve liquidity or equity base to mitigate solvency risks.
• Confirm No Director Disqualification or Legal Issues: Although no disqualifications are noted, confirm through official records.