Company Number: 12881098

Analysis Date: 2025-07-20 17:55 UTC

1. Credit Opinion: DECLINE
   Utercia Limited shows persistent and increasing net current liabilities and negative shareholders' funds over the last four years, indicating weak financial health and poor capital structure. The company's micro-entity status, absence of employees, and minimal current assets (£48 in 2024) compared to substantial current liabilities (£33,493) raise serious concerns about its ability to meet short-term obligations. The negative working capital position worsened from -£29,599 in 2023 to -£33,445 in 2024, reflecting deteriorating liquidity. No evidence of profitability or cash inflows is presented, and the company appears reliant on external financing or director support. Without a clear turnaround or injection of equity, the risk of default or insolvency is high. Therefore, credit facilities cannot be recommended at this stage.

2. Financial Strength:
   The balance sheet shows fixed assets stable at £18,076 but current assets have collapsed from £646 in 2023 to just £48 in 2024. Current liabilities increased from £30,245 to £33,493, worsening net current assets from -£29,599 to -£33,445. Shareholders’ funds are negative and have declined further from -£11,523 (2023) to -£15,369 (2024), indicating erosion of capital. The company’s financial trajectory since incorporation in 2020 shows a steady decline from positive net assets of £1,252 to significant net liabilities. This weakened balance sheet structure signals poor financial resilience and inability to absorb operational shocks.

3. Cash Flow Assessment:
   Cash or liquid assets are negligible, and working capital is deeply negative, implying limited capacity to fund day-to-day operations without external support. The absence of employees means likely low operating costs, but also minimal capacity to generate income. The company’s filings do not disclose profit and loss statements, but the balance sheet trends imply ongoing losses or negative cash flow. The liquidity position is fragile with current liabilities exceeding current assets by a wide margin and no buffer for unexpected expenses or downturns.

4. Monitoring Points:

• Monthly liquidity and cash flow forecasts to detect any worsening of short-term funding gaps.
• Any changes in capital structure, including director loans or equity injections.
• Timely filing of accounts and confirmation statements to monitor compliance and operational status.
• Any material changes in the business model or client contracts that could improve revenues or cash inflows.
• Director conduct and credit behavior given sole control by Mr Parshav Garg, including any personal guarantees or related party transactions.