UTA FAMILY PROPERTIES LTD

Executive Summary

UTA FAMILY PROPERTIES LTD is a newly formed micro-entity with a negative net asset position and limited operational activity. The company’s balance sheet shows over-leverage and negative equity, raising significant credit risk concerns. Given these financial weaknesses and lack of demonstrated cash flow, credit facilities are not recommended at this stage.

UTA FAMILY PROPERTIES LTD - Analysis Report

Company Number: 15222056

Analysis Date: 2025-07-29 16:44 UTC

1. Credit Opinion: DECLINE
   UTA FAMILY PROPERTIES LTD, a recently incorporated private limited company in the real estate sector, exhibits weak financial fundamentals. The company’s net liabilities position and negative shareholders' funds demonstrate insufficient capitalization. The high level of creditors due after one year (£198,725) surpasses total assets less current liabilities (£196,098), indicating over-leverage and potential repayment difficulties. Additionally, the company has no employees and limited operating history, which increases risk due to lack of proven cash flow or operational track record. Given the micro-entity status and negative equity, the ability to service new or existing debt is questionable, leading to a recommendation to decline credit facilities at this time.

2. Financial Strength:
   The balance sheet shows fixed assets of £282,351, reflecting investment likely in property, consistent with its SIC codes for property management and trading. Current assets stand at £48,747, but current liabilities are £135,000, resulting in a negative net current asset position of -£86,253. After accounting for long-term liabilities of £198,725, net assets are negative £2,627, implying the company is technically insolvent on a balance sheet basis. Shareholders’ funds mirror this negative figure, indicating no retained earnings or capital buffer. This weak equity base and over-reliance on external creditors is a financial vulnerability.

3. Cash Flow Assessment:
   The absence of employees and limited current assets suggest minimal operational activity and tight liquidity. The large creditor balances due within and after one year reflect significant obligations which may strain working capital. Negative net current assets highlight working capital deficiency, raising concerns over short-term liquidity and ability to meet payables. There is no disclosed information on cash flow from operations or profitability, but micro-entity accounts and early stage suggest cash inflows may be insufficient for debt servicing without additional equity injection or asset sales.

4. Monitoring Points:

• Watch for improvements in net current assets and reduction in creditor balances to strengthen liquidity.
• Monitor any additional capital injections or shareholder loans to reinforce equity base.
• Track operational cash flows and profitability trends once business activities scale beyond micro-entity level.
• Review director and shareholder conduct for any changes in control or financial stewardship.
• Confirm timely filing of accounts and confirmation statements to ensure regulatory compliance.