UTL ENTERPRISES LTD

Executive Summary

UTL ENTERPRISES LTD is a small retail company exhibiting signs of liquidity stress with negative working capital but has shown some improvement in net assets over the last year. The company maintains good regulatory compliance and stable leadership, though limited scale and financial resources present moderate solvency risks. Further due diligence on cash flow and business operations is recommended to clarify ongoing viability and risk exposure.

UTL ENTERPRISES LTD - Analysis Report

Company Number: 13130973

Analysis Date: 2025-07-29 20:24 UTC

1. Risk Rating: MEDIUM
   Justification: UTL ENTERPRISES LTD is a micro-entity with limited financial data indicating modest net assets and fluctuating working capital. The company shows a small but positive net asset base in the most recent year, but persistent negative net current assets suggest liquidity pressures. The business is active with timely filings, indicating regulatory compliance, but the financial position warrants caution.

2. Key Concerns:

   • Liquidity Constraints: Current liabilities consistently exceed current assets, resulting in negative net current assets (£-4,671 in 2024), which may indicate difficulties in meeting short-term obligations.
   • Limited Financial Resources: Share capital is nominal (£100), and net assets are relatively low (£6,147 as of 2024), which may restrict the company’s ability to absorb financial shocks or invest in growth.
   • Operational Scale and Sustainability: The company only employs one person and operates in a competitive retail sector (SIC 47190), which may limit scalability and resilience against market fluctuations.

3. Positive Indicators:

   • Improvement in Net Assets: Net assets almost doubled from £3,538 in 2023 to £6,147 in 2024, indicating some strengthening of the balance sheet.
   • Regulatory Compliance: All statutory filings, including accounts and confirmation statements, are up to date with no overdue submissions, indicating good governance practices.
   • Stable Leadership: The sole director has been in position since incorporation with no adverse records noted, suggesting stable management.

4. Due Diligence Notes:

   • Review cash flow statements and detailed creditor schedules to assess liquidity management and timing of liabilities.
   • Investigate the nature of fixed assets and how they contribute to revenue generation or operational capacity.
   • Understand the business model in detail, including revenue streams, customer base, and competitive positioning in the retail sector.
   • Confirm whether any off-balance sheet liabilities or contingent risks exist that could impact solvency.
   • Assess the director’s experience and plans for business growth or restructuring to improve financial stability.