Company Number: NI678380

Analysis Date: 2025-07-19 12:55 UTC

1. Credit Opinion: DECLINE
   UC Termon Ltd presents a high credit risk due to persistent negative net assets and working capital deficits over the last three years. The company’s liabilities significantly exceed its assets, indicating insolvency on a balance sheet basis. Cash balances are minimal relative to short-term liabilities, and there is reliance on creditor funding including bank loans and bills of exchange. Without clear evidence of profitability or capital injections, the company’s ability to meet debt obligations is questionable.

2. Financial Strength:
   The balance sheet shows consistent net liabilities worsening from -£24.4k in 2023 to -£42.1k in 2024. Current liabilities (£41.3k) exceed current assets (£9.5k) by £31.8k, indicating a strained liquidity position. Fixed assets of £11.9k are tangible, mainly land and machinery, but do not sufficiently cover creditors. Shareholders’ funds are negative, reflecting accumulated losses. The increase in long-term creditors (from £9.9k to £22.2k) suggests extended payment terms or deferred obligations.

3. Cash Flow Assessment:
   Cash on hand is low (£280), insufficient to cover immediate liabilities. Negative net current assets highlight working capital deficiency, likely leading to liquidity challenges. The company’s reliance on trade and other creditors, including bank loans and bills of exchange, points to short-term funding pressure. No profit and loss data was provided, but ongoing losses implied by negative reserves suggest cash flow from operations may be inadequate to support debt servicing.

4. Monitoring Points:

• Improvement or further deterioration of net current assets and net liabilities.
• Cash flow from operations and ability to generate positive working capital.
• Changes in creditor composition, especially bank loans and bills of exchange.
• Directors’ plans to restore solvency, such as capital injections or restructuring.
• Timely filing of accounts and confirmation statements to assess ongoing compliance and transparency.