KAANTIMUR LTD

Executive Summary

KAANTIMUR LTD is currently in a fragile financial position with negative net assets and a heavy reliance on long-term debt, signaling financial distress. While the company holds significant fixed assets typical for its real estate sector, liquidity constraints and negative equity present risks that need urgent management action. Strategic liquidity management and debt restructuring are recommended to improve financial wellness and stabilize operations.

KAANTIMUR LTD - Analysis Report

Company Number: 13888173

Analysis Date: 2025-07-20 16:46 UTC

Financial Health Assessment of KAANTIMUR LTD

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1. Financial Health Score: D

Explanation:
The company shows signs of significant financial strain with net liabilities and negative shareholders' funds, indicating an unhealthy financial position. While it is still active and not in liquidation, the company's balance sheet reveals symptoms of distress. The score D reflects concerns over solvency and capital structure stability, typical of early-stage or financially stressed micro-entities in capital-intensive sectors like real estate.

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2. Key Vital Signs

Metric	2024 Figure	Interpretation
Fixed Assets	£280,859	High level of long-term assets, typical for real estate management, suggests capital investment.
Current Assets	£1,954	Very low liquid resources; weak "cash flow pulse," signaling potential difficulties covering short-term obligations.
Current Liabilities	£749	Low current liabilities indicate manageable short-term debts, but cash is minimal.
Net Current Assets	£1,205	Slightly positive working capital; short-term liquidity is just sufficient to cover immediate debts.
Creditors Due After One Year	£288,109	Significant long-term liabilities outweigh current assets, representing a heavy debt burden.
Net Assets / Shareholders Funds	-£6,045	Negative equity indicates the company owes more than it owns; a critical warning sign of financial health.

Summary of Vital Signs:
The large fixed asset base combined with heavy long-term liabilities suggests the company is highly leveraged, likely due to property acquisitions funded through debt. The minimal current assets highlight liquidity constraints, which could impair operational flexibility.

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3. Diagnosis

KAANTIMUR LTD is showing classic "symptoms of financial distress" in its balance sheet. The company’s negative net assets and shareholders’ funds indicate it is technically insolvent on a balance sheet basis, meaning total liabilities exceed total assets. This condition is particularly concerning in the real estate sector where asset values can fluctuate and liquidity is crucial.

The "healthy cash flow" symptom is weak here, as current assets are insufficient to build a comfortable liquidity buffer, though current liabilities remain low. The company relies heavily on long-term creditors, which creates pressure to service debt and meet future obligations. Given it is a micro-entity incorporated recently (2022), this may reflect an early-stage capital structure with funding still being arranged or asset acquisitions recently completed.

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4. Recommendations

• Improve Liquidity:
  Increase cash reserves or short-term assets through operational cash flow improvements or by renegotiating payment terms with creditors. Consider injecting additional equity capital to reduce reliance on long-term debt.

• Debt Restructuring:
  Engage with lenders to restructure long-term liabilities, potentially extending maturity dates or adjusting interest terms to reduce financial strain.

• Asset Revaluation and Disposal:
  Review fixed assets for possible revaluation or disposal of non-core properties to generate liquidity and improve net asset position.

• Operational Efficiency:
  Since the company currently has no employees, focus on streamlining management and operational costs to preserve cash.

• Financial Monitoring:
  Implement regular financial health check-ups to monitor cash flow, working capital, and debt levels, preventing worsening distress.

• Seek Professional Advice:
  Engage financial advisors to explore capital raising options and optimize the capital structure for sustainability.

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