Company Number: 14807059

Analysis Date: 2025-07-29 13:15 UTC

1. Risk Rating: MEDIUM
   Justification: UE 4 Ltd is a recently incorporated private limited company (April 2023) with active status and no overdue filings, indicating compliance. However, the financials show net liabilities (£900) and negative shareholders’ funds (£1,000), suggesting early stage operational losses or incomplete capitalisation. The high level of long-term creditors owed to group undertakings (£193,342) indicates reliance on related party funding rather than external financing, which may raise concerns about solvency and liquidity if intercompany support ceases.

2. Key Concerns:

   • Negative Net Assets and Shareholders' Funds: The company reports net liabilities and negative equity, which could indicate financial strain or undercapitalisation at this early stage.
   • High Related Party Debt: Amounts falling due after more than one year are significant and owed to group undertakings, increasing risk if intra-group support is withdrawn.
   • Limited Operational History: Being incorporated in 2023 with only one set of accounts filed limits visibility on performance trends, cash flow generation, and sustainability.

3. Positive Indicators:

   • Current Assets Cover Current Liabilities: The company has £193,922 in current assets against £1,480 current liabilities, yielding strong net current assets, which supports short-term liquidity.
   • Compliance and Governance: No overdue accounts or confirmation statements and appointment of a corporate secretary suggest good governance and regulatory compliance.
   • Clear Control Structure: Ownership is concentrated with Umbra Storage Limited (75-100%), Umbra Energy Limited (50-75%), and Rencore Limited (25-50%), providing a stable shareholder base with control over director appointments.

4. Due Diligence Notes:

   • Investigate the nature, terms, and repayment schedule of the £193,342 owed to group undertakings to assess solvency risks and potential contingent liabilities.
   • Review cash flow projections and funding plans to understand how the company intends to improve its negative equity position and ensure ongoing liquidity.
   • Ascertain the company's business model and revenue streams given SIC code 96090 ("Other service activities not elsewhere classified") is broad; understanding operational sustainability is critical.
   • Confirm whether the issued share capital of £100 is fully paid or partly unpaid (noting the accounts mention shares are unpaid at par), as this affects capital adequacy.
   • Review intercompany relationships and guarantees within the group that might affect risk exposure.