Company Number: 13114039

Analysis Date: 2025-07-20 12:48 UTC

1. Risk Rating: HIGH

Justification: Uchcomfy Ltd shows significant negative net current assets and net liabilities with a persistent and growing deficit in shareholders' funds. The current liabilities substantially exceed current assets by a wide margin, indicating liquidity strain. Additionally, the company carries large long-term debt relative to asset values, which heightens solvency risk.

2. Key Concerns:

• Liquidity Deficit: Negative net current assets of £30,576 (2024) worsening from £12,837 (2023) indicate potential difficulties meeting short-term obligations. Current liabilities (£46,109) greatly exceed cash and debtors combined (£15,533).
• Solvency Risk: The company has net liabilities of £30,576 with negative shareholders’ funds, showing accumulated losses and a balance sheet deficit that raises concerns about ongoing viability.
• High Director Loans and Bank Debt: Substantial loans from directors (£72,142 total) and bank loans (£71,250) pose a risk if the company cannot generate sufficient cash flows to service these debts.

3. Positive Indicators:

• Stable Investment Property Valuation: Fixed assets in investment property remain steady at £101,020, providing some tangible asset backing.
• No Overdue Filings: Accounts and confirmation statement filings are up to date, indicating compliance with regulatory requirements.
• Small Employee Base and Controlled Overheads: With only one employee, operational costs may be low, which could help preserve cash if revenues improve.

4. Due Diligence Notes:

• Cash Flow Analysis: Investigate the company’s cash flow statements and projections to understand the short-term liquidity management and ability to service debts.
• Debt Terms and Covenants: Review terms of director loans and bank loans, including interest rates, repayment schedules, and any security provided.
• Revenue and Profitability Trends: Examine turnover and profit & loss statements to assess whether operating performance is improving or deteriorating.
• Director Intentions and Support: Clarify whether director loans are likely to be converted, repaid, or further extended, and assess their willingness to continue supporting the business.
• Valuation of Investment Property: Confirm investment property valuation methodology and marketability to understand asset realizability under distress.