ULA20 LTD

Executive Summary

ULA20 Ltd has demonstrated a positive turnaround in net assets and working capital within two years of incorporation, reflecting improving financial stability. While current liquidity appears sufficient, the company’s small size, limited asset base, and increased liabilities warrant cautious credit exposure with close monitoring of cash flow and liability trends. Overall, credit approval is recommended with prudent limits and ongoing review.

ULA20 LTD - Analysis Report

Company Number: 14151488

Analysis Date: 2025-07-29 14:42 UTC

1. Credit Opinion: APPROVE with caution. ULA20 Ltd is an early-stage private limited company showing a significant turnaround from negative net assets in prior years to positive net assets and net current assets in the latest year. The company has no overdue filings and appears compliant. However, as a micro-entity incorporated in 2022 with limited trading history and modest fixed assets, the credit exposure should be limited and monitored closely. The positive working capital and net asset position indicate basic financial stability but the company remains small and relatively unproven.

2. Financial Strength: The balance sheet as of 31 March 2024 shows net assets of £26,560, up from a deficit of £2,076 in the prior year. This improvement is driven by a substantial increase in current assets (£119,916 vs £2,932), likely reflecting increased cash or receivables. Fixed assets are minimal at £2,358. Current liabilities have increased markedly to £94,514 but remain covered by current assets, yielding net current assets of £25,402. Share capital is nominal (£100). Overall, financial strength is moderate for a micro-entity, with improved equity but a need to watch liability growth.

3. Cash Flow Assessment: Current assets relative to current liabilities suggest adequate short-term liquidity with a positive working capital buffer of £25,402. The increase in current liabilities from £4,408 to £94,514 is notable and should be understood—possibly trade creditors or accrued expenses. The company has a small employee base (2) and exempt audit status, indicating cost controls consistent with early-stage operations. Cash flow appears sufficient to cover short-term obligations, but further detail on cash generation and receivables aging would be needed for deeper assessment.

4. Monitoring Points:

• Monitor growth in current liabilities to ensure they are sustainable and not indicative of cash flow stress.
• Watch for consistent profitability and retention of earnings to build reserves beyond the current modest net assets.
• Keep track of the company’s ability to convert current assets to cash in a timely manner.
• Review annual filings for any changes in director composition or ownership that could affect governance.
• Assess operational progress and client base expansion given the consultancy and real estate SIC codes to confirm business model viability.