K L K SOLUTIONS LTD

Executive Summary

K L K SOLUTIONS LTD presents a financially stable profile for a young private limited company, with healthy liquidity and net asset growth, and no filing compliance issues. The limited operating history and modest share capital warrant monitoring, but current indicators suggest low solvency and liquidity risks. Further due diligence on operational profitability and contractual obligations is recommended to fully assess ongoing business sustainability.

K L K SOLUTIONS LTD - Analysis Report

Company Number: 14226458

Analysis Date: 2025-07-20 11:44 UTC

1. Risk Rating: LOW
   K L K SOLUTIONS LTD demonstrates solid net current assets and net assets with a positive working capital position, stable cash balances, and no overdue filings. The company is relatively young but shows increasing equity and manageable liabilities, indicating low immediate solvency or liquidity risk.

2. Key Concerns:

• Limited operating history since incorporation in mid-2022; financial trends are based on a short period, which may not fully capture business volatility or risks.
• Current liabilities remain significant (£30k in 2025) relative to the scale of the business; needs monitoring to ensure cash flow can sustain timely payments.
• The share capital is minimal (£2), which may limit financial flexibility and capital buffer in adverse conditions.

3. Positive Indicators:

• Consistent positive net current assets growing from £5,334 (2022) to £52,001 (2025) indicating strengthening liquidity.
• Cash balances remain robust and stable around £76k to £77k, covering current liabilities comfortably.
• Shareholders’ funds have increased to £61,705, reflecting retained earnings and growth in net assets.
• All statutory filings, including accounts and confirmation statements, are up to date with no overdue notices.
• The company employs a small but consistent workforce (2 employees), suggesting controlled operating costs.

4. Due Diligence Notes:

• Review underlying contracts and receivables (notably the £5,899 CIS debtor) to assess collectability and revenue sustainability.
• Examine revenue streams and profitability, since turnover and profit & loss details are not provided in the filleted accounts.
• Confirm the absence of contingent liabilities or off-balance sheet obligations that could impact solvency.
• Investigate the strategic business plan given the company operates in "Other telecommunications activities" under SIC 61900, a sector that may have competitive and regulatory challenges.
• Validate the director appointments and any related party transactions, especially since directors share an address.