Company Number: 13594187

Analysis Date: 2025-07-29 17:25 UTC

1. Credit Opinion: DECLINE
   Ultashield Limited presents significant credit risk due to persistent net liabilities and negative shareholders’ funds over the last three years. The company has no employees, minimal current assets (just £1 cash), and increasing current liabilities primarily driven by a director’s loan account. There is no evidence of revenue generation or profitability, and the company’s balance sheet is deteriorating, indicating inability to meet short-term obligations. Given this weak financial profile and absence of operational scale, the risk of default on any credit facility is high.

2. Financial Strength:
   The company’s balance sheet shows negative net assets of £870 as of August 2024, worsening from £443 the previous year. Current liabilities nearly double current assets, resulting in a negative working capital position of -£870. The main liability is a director’s loan (£631), which increases year-on-year, highlighting reliance on director funding rather than external creditors or trade payables. The company holds no fixed assets and no recorded debtors or stock, reflecting a very weak financial base and limited tangible collateral.

3. Cash Flow Assessment:
   Cash on hand is negligible (£1) with no indication of operating cash inflows from trade. The company reported no employees, which suggests minimal operating activity. The continued increase in director’s loan implies that cash inflows are primarily from internal funding rather than trading cash flow. This raises liquidity concerns as the ability to generate positive operational cash flow is unproven, and the company is structurally dependent on director advances to cover liabilities.

4. Monitoring Points:

• Monitor changes in current liabilities, especially director’s loan account balances.
• Track any filing of trading or turnover figures to assess operational progress.
• Watch for improvements in net current assets and net asset position in future accounts.
• Observe any external financing or credit lines taken to improve liquidity.
• Review any director or management changes that might affect financial stewardship.