K I RENTALS LTD

Executive Summary

K I RENTALS LTD presents a weak financial profile with negative net assets and significant liquidity shortfalls as of the latest accounts. The company’s deteriorating balance sheet and minimal current assets relative to liabilities undermine its ability to meet credit obligations. Without clear evidence of improved cash flows or capital support, the credit risk is high, leading to a recommendation to decline credit facilities at this time.

K I RENTALS LTD - Analysis Report

Company Number: 13272413

Analysis Date: 2025-07-29 17:08 UTC

1. Credit Opinion: DECLINE. K I RENTALS LTD displays significant financial weakness with net current liabilities of £42,693 as of 31 March 2024 and a negative net asset position. The company is a micro-entity with minimal current assets (£1,004) against sizeable current liabilities (£43,697). The worsening net current asset position compared to prior years indicates deteriorating liquidity. With no employees and limited financial disclosures, there is insufficient evidence of sustainable cash generation or management capacity to service debt or meet commercial commitments reliably.

2. Financial Strength: The balance sheet reveals a negative working capital position of £42,693 for the latest year, which has nearly doubled from the prior year. Net assets and shareholders’ funds are also negative and deteriorating, signaling that liabilities exceed assets. The company’s share capital is nominal (£1), and it relies heavily on short-term creditor funding. The absence of fixed assets and minimal current assets further weakens its financial resilience. This fragile financial structure raises concerns about solvency and going concern status.

3. Cash Flow Assessment: Limited current assets (mainly cash or equivalents at £1,004) vs. current liabilities of £43,697 suggest severe liquidity constraints. Negative net current assets imply the company may struggle to meet immediate obligations without additional funding or capital injection. No employees and no income statement data provided limit assessment of operating cash flows, but the balance sheet trend shows increasing creditor reliance, indicating possible cash flow stress.

4. Monitoring Points:

• Monitor changes in current liabilities and current assets for signs of improving liquidity.
• Watch for any capital injections or director loans to support operations.
• Review future filed accounts for signs of profitability or cash generation.
• Observe any director changes or restructuring measures that may impact credit risk.
• Assess external market conditions in the housing association rental sector that may affect business viability.