C K P LTD

Executive Summary

C K P LTD shows a stable financial position with positive asset and equity growth but faces ongoing liquidity challenges indicated by negative working capital. The company is not in distress but would benefit from focused cash flow management and strategic planning to sustain healthy operations and support growth. Addressing liquidity will enhance financial wellness and reduce risks.

C K P LTD - Analysis Report

Company Number: 13546466

Analysis Date: 2025-07-29 17:50 UTC

Financial Health Assessment for C K P LTD

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1. Financial Health Score: B

Explanation:
C K P LTD demonstrates stable and improving net asset growth and equity base in the recent financial year. Although it shows persistent net current liabilities (working capital deficit), the company's asset base and shareholder funds have increased steadily. This suggests moderate financial resilience but with some liquidity concerns that should be addressed for optimal health. The company is not showing critical distress but has symptoms that require monitoring and management action.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Fixed Assets	64,476	60,074	Growing investment in long-term assets indicates some capital expenditure or asset acquisition.
Current Assets	21,151	17,469	Slight increase in short-term resources available for operations.
Current Liabilities	30,962	31,517	Slight decrease but still relatively high short-term obligations to be settled soon.
Net Current Assets (Working Capital)	-9,811	-14,048	Negative working capital ("symptom of liquidity strain") means current liabilities exceed current assets, a potential cash flow concern.
Total Assets Less Current Liabilities	54,665	46,026	Positive figure shows overall net assets after current liabilities, improved from last year.
Net Assets (Shareholders Funds)	47,502	41,496	Increasing equity base reflects retained earnings and financial stability over time.
Average Number of Employees	3	3	Small workforce consistent with micro-entity classification; manageable operational scale.

Additional Observations:

• The company qualifies as a micro-entity, suggesting a small scale operation with limited reporting requirements.
• Filing is current and compliant, indicating good administrative health.
• The director owns 75-100% shares and voting rights, implying concentrated control but potentially quick decision-making.

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3. Diagnosis

Overall Financial Condition:
C K P LTD's financial "vital signs" suggest a stable but cautious condition. The increasing fixed assets and net assets indicate a business investing for future growth and accumulating value. However, the persistent negative working capital ("symptom of cash flow tightness") highlights a liquidity risk where short-term liabilities are not fully covered by liquid assets. This could constrain the company's ability to meet immediate financial obligations without external support or better cash management.

The steady shareholder funds growth points to retained profits or capital injections strengthening the company’s financial backbone. The small employee base aligns with the micro-entity status, likely reflecting a lean operational model. The absence of overdue filings and no indications of financial distress or insolvency proceedings suggests the company is currently financially viable.

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4. Recommendations

• Improve Liquidity Management:
  Focus on boosting current assets, especially cash or receivables collection, to reduce the working capital deficit. Consider negotiating longer payment terms with suppliers or faster invoicing to customers.

• Cash Flow Forecasting:
  Implement regular cash flow forecasting to anticipate short-term funding needs and avoid liquidity crunches.

• Review Current Liabilities Composition:
  Analyze current liabilities to determine if some can be restructured into longer-term debt to ease immediate pressure.

• Maintain Asset Growth with Caution:
  While fixed asset growth is positive, ensure investments generate timely returns and do not further stress cash flow.

• Monitor Financial Ratios:
  Track liquidity ratios (current ratio, quick ratio) and solvency metrics over time to detect deterioration early.

• Engage in Strategic Planning:
  Given the director's full control, leverage this to streamline decision-making on cost control, pricing strategies, and business development to strengthen financial resilience.

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