UNITROVE GROUP LIMITED

Executive Summary

Unitrove Group Limited is currently financially distressed with a worsening negative net asset position and substantial working capital deficits. The company relies heavily on director and group support to meet obligations, lacking independent cash flow capacity to service debt. Given these factors, credit risk is high and approval for new credit facilities is not recommended without strong mitigating factors or evidence of operational turnaround.

UNITROVE GROUP LIMITED - Analysis Report

Company Number: 13054453

Analysis Date: 2025-07-20 11:01 UTC

1. Credit Opinion: DECLINE
   Unitrove Group Limited exhibits ongoing financial distress with persistent and growing negative net current assets and shareholders’ funds, reflecting accumulated losses. The company’s liabilities significantly exceed its current assets (£67,569 vs £40,860 in 2024), leading to a working capital deficit of £26,709. Although the directors state support will continue and group debts will not be called in imminently, this reliance on director/group support indicates weak independent repayment capacity. There is no evidence of profitability or positive cash flow to service debt, raising substantial credit risk. Without significant operational improvement or capital injection, credit exposure is high.

2. Financial Strength:
   The balance sheet reveals a consistently negative net asset position worsening from -£3,044 in 2020 to -£26,449 in 2024. Fixed assets are minimal (£270), suggesting limited collateral value. Current liabilities have more than doubled in a year, mainly due to increase in taxation/social security liabilities and amounts owed to group undertakings. The company’s capital base is negligible (£10 share capital), and retained losses dominate equity. The financial trajectory is deteriorating, showing accumulated losses expanding as business liabilities grow.

3. Cash Flow Assessment:
   Cash on hand is nominal (£589), insufficient to meet current liabilities of £67,569. Debtors have increased substantially but appear mostly intra-group balances (£33,403 owed by group undertakings), which may be subject to group financial health and intercompany arrangements. The company’s negative working capital position indicates poor liquidity and potential difficulties in meeting short-term obligations without external support. Current liabilities include significant tax and social security amounts, which may require urgent payment. Lack of cash and reliance on group loans point to weak operational cash flow generation.

4. Monitoring Points:

• Track changes in net current assets and shareholders’ funds to detect any capital improvements or further erosion.
• Monitor timing and settlement of tax and social security liabilities to avoid enforcement actions.
• Review intra-group debtor and creditor balances for collectability and group financial stability.
• Watch for updates on director or shareholder injections or restructuring plans that may improve liquidity.
• Assess future filed accounts for evidence of revenue growth, profit generation, and cash flow improvements.