Company Number: 13113023

Analysis Date: 2025-07-20 11:14 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   UMATR Ltd is an active private limited company operating in employment placement services. The company shows a significant decline in net assets and current assets from 2023 to 2024, with net assets reducing from £331k to £174k and current assets halving from £377k to £188k. While it maintains positive net current assets and shareholders' funds, the sharp reduction in liquidity and fixed assets suggests some operational or financial stress. The director is the sole significant controller, which centralizes decision-making but may limit broader governance. Given these factors, credit approval is possible but should be subject to conditions such as monitoring cash flows closely and requiring up-to-date management accounts.

2. Financial Strength:
   The balance sheet shows the company’s net assets have decreased by approximately 47% year on year, primarily driven by a substantial drop in cash and current assets. Fixed assets have also been reduced considerably due to disposals. Current liabilities have improved markedly, decreasing from £94k to £26k, which partially offsets the asset decline. Overall, the company retains positive equity and working capital, but the downward trend in total assets and shareholders’ funds points to weakening financial resilience. The small share capital (£100) and reliance on one controlling director increase risk concentration.

3. Cash Flow Assessment:
   Cash at bank dropped from £355k in 2023 to £165k in 2024, indicating a reduction in liquidity by more than 50%. Debtors remain stable, but there is a notable decrease in other current assets. Current liabilities have decreased substantially, improving short-term solvency, but the cash burn rate or operational cash needs appear significant. The company has no finance lease obligations outstanding as of 2024, which reduces fixed financial charges. Despite positive net current assets (£161.5k), the liquidity decline necessitates regular monitoring of cash flow forecasts and working capital management.

4. Monitoring Points:

• Monthly cash flow and liquidity reports to track ongoing cash depletion.
• Customer debtor aging to ensure timely collections and minimize bad debts.
• Reassessment of fixed asset utilization and capital expenditure plans.
• Management updates on operational performance, especially contract wins or losses affecting revenue.
• Governance structure given sole director control; consider risk mitigation for decision-making concentration.