ULTIMATE PROPERTIES AND LETTINGS LTD

Executive Summary

Ultimate Properties and Lettings Ltd is currently in a financially distressed position with persistent negative equity and insufficient liquidity. The company’s reliance on director loans and worsening working capital deficits indicate an inability to service additional credit. Without significant improvement in profitability or capital structure, the company presents a high credit risk and is not recommended for credit approval at this time.

ULTIMATE PROPERTIES AND LETTINGS LTD - Analysis Report

Company Number: 12770988

Analysis Date: 2025-07-29 15:06 UTC

1. Credit Opinion: DECLINE

Ultimate Properties and Lettings Ltd shows a persistent negative equity position with net liabilities of £5,105 as at 31 July 2023, worsening from £3,511 the previous year. The company’s current liabilities (£7,250) exceed current assets (cash of only £2,145), resulting in a negative working capital of £5,105. This indicates insufficient liquidity to cover short-term obligations. The company relies on director loans to fund operations, suggesting limited external creditworthiness. No other significant assets or reserves are reported. The company has minimal share capital (£100) and has not generated retained earnings to offset losses. The financial trajectory over four years shows increasing losses and deteriorating net assets, pointing to ongoing financial distress without clear signs of recovery. Given these factors, the company is currently not able to service additional debt or credit facilities without significant risk.

2. Financial Strength:

The balance sheet shows weak financial health. Net liabilities and negative shareholders’ funds reflect accumulated losses and no buffer for creditors. Current liabilities are primarily loans from directors, indicating reliance on informal funding rather than bank or trade credit. The company has no fixed assets or other reported tangible net worth. The continued erosion of equity and working capital deficits highlight a fragile financial foundation and limited capacity to absorb shocks or downturns. The absence of audit and limited disclosures reduce transparency but given the negative net asset position, the financial strength is poor.

3. Cash Flow Assessment:

Cash balances remain very low (£2,145 at year-end), insufficient to cover current liabilities of £7,250, resulting in a negative net current asset position of £5,105. The company appears to have minimal operational cash inflows, relying on director loans to fund short-term requirements. Liquidity is constrained, and there is no indication of positive operating cash flow or working capital management. The negative working capital position increases risk of payment delays or inability to meet creditor demands promptly. Overall, cash flow is weak and insufficient to support credit extension.

4. Monitoring Points:

• Track changes in net current assets and working capital trends to detect any improvement or further deterioration.
• Monitor director loans and any new external borrowing to assess funding sources and financial stability.
• Review future accounts for evidence of profit generation or capital injection to rebuild equity.
• Watch for any late filings or changes in company status that might signal distress escalation.
• Assess operational cash flow improvements or new revenue streams that could enhance liquidity.