Company Number: 13887035

Analysis Date: 2025-07-20 16:50 UTC

1. Credit Opinion: APPROVE
   K INTERACTIVE LTD demonstrates a sound financial position with positive net assets and increasing cash reserves. The company is active with up-to-date filings and no overdue returns, indicating good governance and compliance. The presence of strong cash balances relative to current liabilities supports its ability to service short-term obligations. Given the company’s growth in net assets and working capital, credit facilities can be extended with confidence.

2. Financial Strength:
   The company’s balance sheet shows a significant improvement in net assets from £16,669 (2023) to £98,347 (2024), driven primarily by an increase in cash at bank from approximately £24k to £149k. Fixed assets and other debtors are minimal, which is typical for a media representation service business. Shareholders’ funds have increased in line with retained earnings, reflecting profitable operations or capital injections. The company operates as a micro entity with only 2 employees, maintaining a lean cost structure.

3. Cash Flow Assessment:
   Cash and cash equivalents increased substantially, enhancing liquidity and reducing financial risk. Current liabilities stand at £50,513 against current assets of £148,860, resulting in strong net current assets of £98,347—a healthy working capital position. The main current liability is taxation and social security, which is manageable given current cash levels. There is no indication of overdrafts or short-term borrowing, which supports a low-risk liquidity profile.

4. Monitoring Points:

• Maintain monitoring of taxation liabilities to ensure timely payment and prevent cash flow strain.
• Watch for turnover and profitability trends in future accounts to validate continued growth and cash flow generation.
• Monitor any changes in directors or ownership that might affect company control or financial strategy.
• Given limited fixed assets and reliance on cash and services, assess any potential client concentration risk or seasonality in revenue.