Company Number: 13103468

Analysis Date: 2025-07-20 12:42 UTC

1. Risk Rating: LOW
   D2 KNR LTD demonstrates strong net current assets and net asset growth over the past three years, indicating solid solvency. The company is classified as a micro-entity with minimal liabilities relative to its current assets, which reduces financial risk. Regular and timely filings with no overdue accounts or confirmation statements suggest good regulatory compliance.

2. Key Concerns:

• Concentration Risk: The company has a single director who is also the sole employee, which may pose operational continuity risks if the director is unavailable.
• Limited Financial Disclosure: As a micro-entity, the company files filleted accounts without a profit and loss statement, limiting insight into profitability and cash flow trends.
• Low Share Capital: The nominal share capital (£1) is minimal, which is common for micro-companies but could indicate limited initial funding buffer.

3. Positive Indicators:

• Strong Liquidity Position: Current assets significantly exceed current liabilities (£225,605 vs. £63,220 in 2024), yielding a substantial positive working capital.
• Consistent Growth: Net assets increased from £91,462 in 2021 to £162,022 in 2024, demonstrating capital accumulation and apparent financial stability.
• Good Compliance Record: All statutory filings are up to date with no overdue accounts or confirmation statements, evidencing sound governance practices.

4. Due Diligence Notes:

• Profitability and Cash Flow: Obtain management accounts or tax filings to assess profitability and cash flow generation, as these are not disclosed in micro-entity filings.
• Director’s Capacity and Succession: Understand the director’s capacity to operate the business alone and any contingency plans for management continuity.
• Nature of Current Assets: Verify the composition of current assets (e.g., cash, receivables) to confirm liquidity quality and risk of impairment.
• Contingent Liabilities: Investigate whether there are any off-balance sheet liabilities or commitments not reflected in the micro-entity accounts.