UM ENTERPRISES LTD

Executive Summary

UM Enterprises Ltd, incorporated in 2023, shows early-stage financial distress with negative net assets and liabilities exceeding current assets, raising solvency and liquidity risks. While the company is compliant with filing obligations, its operational sustainability is uncertain without clear evidence of funding or cash flow improvement. Careful due diligence on management capability and financial plans is recommended before investment consideration.

UM ENTERPRISES LTD - Analysis Report

Company Number: 15113598

Analysis Date: 2025-07-19 12:23 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, with net liabilities and negative net current assets shortly after incorporation. This presents a high risk for meeting obligations and operational sustainability.

2. Key Concerns:

• Negative net assets (£-1,013) and net current liabilities (£-2,413) only one year after incorporation indicate financial distress.
• Minimal current assets (£53) compared to current liabilities (£2,466), suggesting poor liquidity and potential cash flow difficulties.
• Single director/secretary and sole shareholder is a young individual with limited disclosure of operational experience, raising governance and operational risk.

3. Positive Indicators:

• The company is current on all statutory filings with no overdue accounts or confirmation statements, reflecting compliance with regulatory requirements.
• Micro-entity status limits filing complexity, reducing administrative burdens.
• Operating in a growing retail sector (mail order/Internet sales) which can support scalability if managed well.

4. Due Diligence Notes:

• Investigate the nature and valuation of the fixed assets (£1,550) and whether they are operationally productive or just initial setup costs.
• Review cash flow projections and funding plans to address negative working capital and net liabilities.
• Assess the director’s background and business plan credibility given the company’s early stage and financial position.
• Confirm if there are any contingent liabilities or related party transactions not disclosed.
• Monitor future filings closely for signs of improvement or further deterioration.