K MANN LIMITED

Executive Summary

K Mann Limited maintains a positive net asset position and meets filing requirements, suggesting solvency and regulatory compliance. However, a notable decline in cash and receivables warrants closer examination of liquidity and operational sustainability. The company’s small scale and reliance on a single director highlight governance and continuity risks that should be addressed in further due diligence.

K MANN LIMITED - Analysis Report

Company Number: 13593014

Analysis Date: 2025-07-29 17:30 UTC

1. Risk Rating: MEDIUM
   K Mann Limited shows a positive net asset position and consistent shareholder equity over its short operating history, indicating solvency. However, the decline in cash and current assets in 2024 compared to the prior year, alongside a significant reduction in debtors and liabilities, suggests changes in operational scale or cash flow patterns that warrant caution. The company’s small size and single-employee structure may limit operational resilience.

2. Key Concerns:

• Declining Cash Position: Cash reserves dropped from £70,987 in 2023 to £43,422 in 2024, which could constrain liquidity if the trend continues.
• Decreasing Debtors: Trade and other debtors reduced markedly from £7,094 to £190, implying either improved collection or reduced sales; the cause should be clarified to assess revenue sustainability.
• Single Director and Employee: Operational dependency on one individual (also the sole shareholder) increases governance and business continuity risks.

3. Positive Indicators:

• Strong Net Asset Base: Net assets remain positive at £39,243, with working capital comfortably exceeding current liabilities, supporting short-term solvency.
• Timely Compliance: No overdue filings for accounts or confirmation statements, indicating good regulatory compliance.
• Exemption from Audit: Consistent with the small company status, reflecting straightforward financial reporting and potentially low complexity.

4. Due Diligence Notes:

• Investigate reasons behind the sharp reduction in debtors and cash balances between 2023 and 2024 to understand operational changes or cash flow issues.
• Review turnover and profitability trends (not disclosed here) to evaluate revenue sustainability and operational stability.
• Confirm if the director/single employee structure has adequate contingency planning for business continuity and governance.
• Verify absence of any director disqualifications or regulatory issues beyond those disclosed.
• Assess any contingent liabilities or off-balance-sheet commitments not reflected in the accounts.