ULTRA H C LIMITED

Executive Summary

Ultra H C Limited has transitioned from a weak financial position to modest net assets within three years, showing signs of improved financial management. However, liquidity remains tight with significant reliance on trade debtors and director funding. Conditional credit approval is advised with emphasis on monitoring cash flow and debtor collections closely.

ULTRA H C LIMITED - Analysis Report

Company Number: 13308864

Analysis Date: 2025-07-20 13:49 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Ultra H C Limited has shown a marked improvement in its financial position over the last two years, moving from net liabilities of approximately £9,859 in 2021 to net assets of £3,694 as of April 2024. This positive turnaround indicates improved financial stewardship and operational performance. However, the company remains relatively small with a modest asset base and limited cash reserves (£3,698). Its reliance on debt, including a director’s loan account (£6,687), and current liabilities close to current assets suggest cautious lending with ongoing monitoring is warranted. Approval is recommended on a conditional basis, subject to regular financial updates and prudent credit limits.

2. Financial Strength:
   The balance sheet reflects a small but improving financial footing. The company’s net current assets improved from a negative £9,859 in 2021 to a positive £3,694 in 2024, indicating enhanced working capital management. Shareholders’ funds turned positive in 2024, demonstrating retained profits or capital injection. Current liabilities (£23,204) are largely offset by current assets (£26,898), but the high level of trade debtors (£23,200) relative to cash suggests potential collection risk. No fixed assets are reported, which limits collateral security. Overall, the financial strength is modest but improving.

3. Cash Flow Assessment:
   Cash at bank is low at £3,698, indicating tight liquidity. The company’s working capital position is positive but marginal, with current liabilities nearly matching current assets. Debtors constitute a large portion of current assets, so the ability to convert receivables into cash promptly is critical for meeting short-term obligations. The director’s loan account (£6,687) forms a significant part of creditors and may reflect informal financing support from management. Cash flow generation appears vulnerable, necessitating close scrutiny of debtor collections and ongoing operational cash flow.

4. Monitoring Points:

• Debtor days and collection efficiency to ensure timely cash inflows.
• Management of current liabilities, especially director’s loan account and tax obligations.
• Profitability trends and retention of earnings to strengthen equity base.
• Cash reserves relative to operational needs and any additional external financing.
• Compliance with filing deadlines and accounting standards to maintain transparency.