UNIFIED DESIGN GROUP LTD
Executive Summary
Unified Design Group Ltd demonstrates a high-risk profile primarily due to sustained negative equity and working capital deficits, raising solvency and liquidity concerns. The company’s minimal operational footprint and reliance on a single director further question its sustainable business model. However, timely regulatory filings and clear ownership structure are positive governance factors. Further investigation into funding arrangements and operational viability is recommended before considering investment.
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This analysis is opinion only and should not be interpreted as financial advice.
UNIFIED DESIGN GROUP LTD - Analysis Report
Risk Rating: HIGH
The company exhibits persistent negative net assets and net current liabilities over multiple years, indicating solvency concerns. The absence of employees and minimal fixed assets suggest limited operational scale and potentially limited cash generation capability.Key Concerns:
- Negative Equity Position: Shareholders’ funds are negative (£-2,177 as of 2024), reflecting accumulated losses and potential insolvency risk.
- Working Capital Deficiency: Net current liabilities of £1,700 (2024) indicate the company does not have sufficient short-term assets to cover short-term liabilities, posing liquidity risk.
- Operational Scale and Sustainability: The company reports zero employees in the latest year, down from one previously, which may signal minimal business activity or reliance on the director only, raising questions about operational sustainability.
- Positive Indicators:
- Compliance with Filings: Accounts and confirmation statements are filed on time, indicating regulatory compliance and governance discipline.
- Single Controlling Director with Clear Ownership: The director owns 75-100% of shares and voting rights, providing clear decision-making authority.
- Micro-Entity Reporting: Consistent use of micro-entity accounting standard suggests limited complexity, which may reduce administrative burdens.
- Due Diligence Notes:
- Investigate the nature and source of ongoing funding or capital injections supporting the company given persistent negative equity.
- Clarify the business model and revenue generation to assess whether the company can achieve operational sustainability.
- Review detailed cash flow statements (not available here) to determine if liquidity pressures are being managed or if there is risk of impending insolvency.
- Confirm if any related party transactions or director loans exist that support the company’s financial position.
- Assess any contingent liabilities or contractual obligations not disclosed in the limited accounts.
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