UK POWERED ACCESS (BIRMINGHAM) LIMITED

Executive Summary

UK Powered Access (Birmingham) Limited exhibits a distressed financial position with negative net assets and no operational assets following a transfer of trade to its parent company. The company lacks sufficient liquidity to meet current liabilities and shows signs of operational cessation, leading to a high risk of default. Credit facilities are not recommended without significant restructuring or guarantee support from the parent entity.

UK POWERED ACCESS (BIRMINGHAM) LIMITED - Analysis Report

Company Number: 13148635

Analysis Date: 2025-07-29 21:01 UTC

1. Credit Opinion: DECLINE

UK Powered Access (Birmingham) Limited presents a weak credit profile. The company is operating with significant net liabilities and negative shareholders' funds, indicating insolvency at the balance sheet date. The transfer of trade and assets to the parent company in April 2022 suggests a cessation or major reduction of trading activities under this entity, raising concerns about ongoing operational viability. The absence of fixed assets post-transfer, combined with very limited current assets (£15,641 cash only) versus current liabilities (£243,676), means the company does not currently have the means to meet its short-term obligations. Without a clear restructuring plan or external financial support, the risk of default is high.

2. Financial Strength:

The balance sheet shows net liabilities of £228,035 as of October 2022, worsening from £166,463 net liabilities in 2021. Current liabilities exceed current assets by £228,035, reflecting a negative working capital position. The complete disposal of fixed assets during the year (from £781,684 in 2021 to zero in 2022) indicates the company has no tangible collateral or operational assets remaining. Share capital remains nominal (£1,000), providing no buffer against losses. The company’s equity position is deeply negative, implying that creditors' claims exceed the company's assets.

3. Cash Flow Assessment:

Cash balances are minimal (£15,641) and have decreased slightly from the prior year (£20,357). Debtors are zero, indicating no outstanding trade receivables to convert into cash. Current liabilities are large and payable within one year, including significant amounts owed to group undertakings (£90,314). The lack of operating assets and the transfer of trade to the parent company strongly suggest that UK Powered Access (Birmingham) Limited is not generating operational cash flow. Liquidity is insufficient to cover short-term debts, creating high refinancing or payment risk.

4. Monitoring Points:

• Monitor any changes in the company’s operational status or if trading resumes independently.
• Watch for updates to accounts or filings that clarify the company’s financial arrangements with the parent group.
• Track payments or restructuring agreements related to current liabilities, particularly intercompany debt.
• Observe director or ownership changes that might signal a turnaround or formal insolvency proceedings.
• Review parent company financial health since it appears to be the ongoing trading entity.