UNITED BUSINESS SERVICES UK LTD

Executive Summary

United Business Services UK Ltd is a recently incorporated micro-entity operating in the hospitality sector, currently exhibiting high financial risk due to escalating liquidity shortfalls and negative equity. While compliance with statutory filings is maintained, reliance on director loans and worsening net current liabilities raise concerns about operational sustainability and solvency. Further investigation into cash flows, business plans, and related party funding is recommended before considering investment.

UNITED BUSINESS SERVICES UK LTD - Analysis Report

Company Number: SC749669

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

1. Risk Rating: HIGH
   United Business Services UK Ltd demonstrates significant solvency and liquidity risks, evidenced by persistent and increasing net current liabilities and negative shareholders’ funds. The company's capital structure is weak with mounting director loans and no indication of profitability or positive equity.

2. Key Concerns:

• Negative Net Current Assets: The company shows a net current liability position worsening from -£6,514 in 2023 to -£24,431 in 2024, indicating severe liquidity stress and potential difficulties meeting short-term obligations.
• Negative Shareholders’ Funds: Shareholders’ funds are negative and have deteriorated from -£1,545 in 2023 to -£19,956 in 2024, signalling accumulated losses or insufficient capital injection, putting solvency at risk.
• Director Loans: Substantial director loans amounting to £22,945 (up from £9,163) with no scheduled repayment or interest create a reliance on related-party funding which may not be sustainable or indicative of underlying financial health.

3. Positive Indicators:

• Compliance with Filing Requirements: The company is up to date with accounts and confirmation statement filings, indicating regulatory compliance and good governance in administrative matters.
• Stable Management Team: Directors and significant controllers have been consistent since incorporation, suggesting stability in leadership.
• Small Scale Operation: As a micro-entity, it benefits from simplified reporting requirements, which may reduce administrative burden and costs.

4. Due Diligence Notes:

• Investigate the nature and terms of director loans to assess risk exposure and likelihood of repayment or conversion to equity.
• Review cash flow statements and profit and loss accounts (not filed publicly) to understand operational cash generation or losses behind the balance sheet deterioration.
• Confirm any contingent liabilities or off-balance-sheet obligations not disclosed in the filleted accounts.
• Assess business model viability given the SIC codes (hospitality sector) which may face operational challenges; verify whether the company has a recovery plan or strategic initiatives to improve financial health.
• Verify if any related party transactions or unusual financial arrangements exist beyond director loans.