UA ESTATES LIMITED

Executive Summary

UA Estates Limited demonstrates a high financial risk profile primarily due to significant liquidity shortfalls and a highly leveraged balance sheet. While statutory compliance and asset stability are positive factors, the limited equity base and lack of profitability data warrant cautious scrutiny. Further due diligence focused on creditor terms and operational cash flow is advised before considering investment.

UA ESTATES LIMITED - Analysis Report

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.