K & S PROPERTIES MANAGEMENT LTD

Executive Summary

K & S Properties Management Ltd shows considerable financial distress with deepening negative net assets and worsening liquidity indicators, raising significant solvency and cash flow concerns. However, the company maintains compliance with filing requirements and has stable management in place. Further detailed financial and operational due diligence is essential to assess the sustainability of the business and the risks posed to creditors and investors.

K & S PROPERTIES MANAGEMENT LTD - Analysis Report

Company Number: 13942801

Analysis Date: 2025-07-20 16:57 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns, evidenced by negative net assets and shareholders' funds that have materially worsened over the latest financial year. The increase in current liabilities outpacing cash reserves also signals liquidity risks.

2. Key Concerns:

• Negative Net Assets: Net assets declined from -£34 in 2023 to -£5,141 in 2024, indicating the company’s liabilities exceed its assets significantly.
• Working Capital Deficit: Net current assets worsened from -£1,034 to -£5,891, implying an inability to cover short-term obligations with current assets.
• Rising Current Liabilities: Current liabilities increased by over 50% year-on-year (£11,642 to £17,806), while cash balances marginally improved, suggesting cash flow strains.

3. Positive Indicators:

• Timely Filings: No overdue accounts or confirmation statements, indicating regulatory compliance and good governance on reporting.
• Stable Management: Directors have been in place since incorporation with no indication of disqualification or governance issues.
• Small Scale Operation: As a small company with only one employee, operating complexity and overheads appear limited, potentially allowing for flexible cost management.

4. Due Diligence Notes:

• Investigate the nature and maturity profile of current liabilities, particularly the significant increase in "other creditors" (£992 to £9,616).
• Review cash flow statements and future cash flow projections to assess operational liquidity and ability to meet obligations.
• Understand the underlying reasons for the increase in losses and negative reserves, including any extraordinary expenses or impairments.
• Consider the business model viability in "other letting and operating of own or leased real estate" given the financial position and examine any lease or property management risks.
• Confirm the adequacy of provisioning for potential liabilities and any contingent risks not reflected in the balance sheet.