Company Number: 14937731

Analysis Date: 2025-07-20 11:16 UTC

1. Credit Opinion: DECLINE. ULTIMA COATINGS LTD is a recently incorporated roofing activities company with a weak financial position at its first year-end. The company reports net current liabilities of £39,731 and negative shareholders’ funds of £17,507, indicating insolvency on a balance sheet basis. Lack of profitability data and no employees further highlight operational immaturity and limited capacity to generate cash flow. The director and PSC structure shows ownership concentration but no evidence of financial strength or external support. Given these factors, the company currently presents a high credit risk and inability to service debt.

2. Financial Strength: The balance sheet shows £22,224 in tangible fixed assets (plant and machinery) but no other significant assets. Current liabilities of £39,731 exceed current assets, resulting in net current liabilities of the same amount. The negative net assets of £17,507 reflect accumulated losses or initial funding shortfalls. Absence of cash or receivables suggests weak liquidity and potential reliance on external funding. The company’s financial health is fragile, typical for a start-up without operational history or profits.

3. Cash Flow Assessment: No reported turnover or profit figures are available, and zero employees indicate minimal business activity at this stage. The negative working capital position suggests insufficient liquid resources to meet short-term obligations without additional financing. The company’s ability to generate positive cash flow from operations is unproven, posing a liquidity risk. Monitoring future cash inflows and operational progress is critical before extending credit.

4. Monitoring Points:

• Turnover and profit development in next financial periods to assess operational viability.
• Changes in working capital, especially current assets growth relative to current liabilities.
• Cash flow statements when available, focusing on operational cash generation.
• Any new funding or capital injections to improve liquidity and solvency.
• Director and PSC involvement in providing financial support if needed.