KA PROPERTIES (NORTH WEST) LTD

Executive Summary

KA Properties (North West) Ltd shows signs of growth through increased investment property and an improved equity position; however, the high level of long-term liabilities and apparent liquidity concerns pose medium risk to solvency. The company maintains good regulatory compliance, but further analysis of short-term cash flow and director loan arrangements is recommended to fully assess financial stability.

KA PROPERTIES (NORTH WEST) LTD - Analysis Report

Company Number: 13113742

Analysis Date: 2025-07-20 14:57 UTC

1. Risk Rating: MEDIUM
   The company presents some concerns regarding solvency and liquidity due to negative net current assets relative to substantial longer-term liabilities, but recent improvements in net assets and equity provide some reassurance.

2. Key Concerns:

• High Long-Term Liabilities: The company has significant creditors due after more than one year (£157,604 as of 2024), including bank loans and director loans, which exceed net assets by a considerable margin.
• Liquidity Imbalance: Current liabilities (£4,402) significantly exceed current assets (£10,989), but net current assets figure appears positive due to an apparent inconsistency in reported figures (net current assets stated as £6,587 but current liabilities exceed current assets if totals are summed). This raises questions about short-term cash flow and working capital management.
• Reliance on Director Loans: The company has substantial loans from directors (£61,904), indicating possible reliance on insider funding to support operations and finance property acquisitions, which may not be sustainable without continued director support.

3. Positive Indicators:

• Increasing Asset Base: Investment property value increased from £95,000 in 2023 to £155,000 in 2024, indicating business growth and asset accumulation.
• Return to Positive Equity: After recording negative net assets in 2023 (-£2,791), the company reported positive shareholders’ funds of £3,983 in 2024, suggesting improving financial stability.
• Compliance and Filing: All statutory filings including accounts and confirmation statements are up to date with no overdue filings, indicating good regulatory compliance.

4. Due Diligence Notes:

• Clarify Working Capital Position: Detailed review of current assets and current liabilities is needed to reconcile apparent inconsistencies and assess true short-term liquidity.
• Review Loan Terms: Examine the terms, interest, and repayment schedules of director loans and other creditor obligations to understand financial obligations and risks.
• Assess Property Valuations: Confirm basis and reliability of investment property valuation and any associated risks or encumbrances on those assets.
• Evaluate Cash Flow Projections: Given the relatively low cash balances and high liabilities, analyze cash flow forecasts to evaluate sustainability of operations without further capital injections.