Company Number: 13028553

Analysis Date: 2025-07-20 18:45 UTC

1. Risk Rating: MEDIUM
   Justification: Ultracell Networks Ltd is an active private limited company recently incorporated in 2020, classified as a micro entity. The company shows a very low net asset value (£10) despite total assets less current liabilities being around £250,000. The presence of significant long-term liabilities (£250,000) equal to the total assets less current liabilities is a notable concern. The company has no audit requirement due to micro-entity status and has no overdue filings, which is positive. However, the minimal equity base and the large creditor balance indicate some leverage that could pose solvency risks.

2. Key Concerns:

• High Long-Term Creditors: The company reports £250,000 in creditors falling due after more than one year, which matches the total assets less current liabilities figure, suggesting the company is highly leveraged and may have limited buffer to absorb financial shocks.
• Extremely Low Net Assets and Shareholders’ Funds: Net assets and shareholders’ funds stand at only £10, indicating minimal equity and potential vulnerability to losses or increased liabilities.
• Director Turnover: There have been multiple director resignations in early 2024, leaving only one current director. Frequent changes in management could signal instability or governance concerns.

3. Positive Indicators:

• No Overdue Filings: The company has complied with filing requirements for accounts and confirmation statements on time, indicating good regulatory compliance.
• Growing Workforce: The average number of employees doubled from 4 to 8 in the last reported year, suggesting operational expansion or increased activity.
• Backing by University and Significant Individual: Ownership control by The University of Leeds (25-50%) and a professor holding majority shares (75-100%) could provide strategic stability and access to resources or networks.

4. Due Diligence Notes:

• Examine the nature and terms of the £250,000 long-term creditors: Understanding whether these are loans, related party liabilities, or other types of debts is critical to assess repayment risk and financial flexibility.
• Check cash flow statements or management accounts if available: To verify liquidity position and the company's ability to meet short-term obligations and operational costs.
• Investigate reasons behind director resignations and governance structure: To ensure continuity of management and assess any risks related to leadership changes.
• Review any related party transactions given university involvement: To confirm fair dealing and independence in financial arrangements.