Company Number: 12979672

Analysis Date: 2025-07-29 18:48 UTC

Financial Health Assessment for KABLE PROPERTIES LTD

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1. Financial Health Score: D

Explanation:
The company is currently showing signs of financial distress primarily due to persistent net liabilities and negative working capital over the past five years. The net assets have declined from -£19,081 in 2020 to -£171,771 in 2024. This prolonged negative equity and insufficient current assets to cover short-term liabilities indicate a weak financial position, leading to the "D" grade, which flags serious attention and remediation.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Net Current Assets (Working Capital)	-£171,771	Negative working capital — current liabilities far exceed current assets, indicating liquidity stress.
Net Assets (Shareholders’ Funds)	-£171,771	Negative net assets show accumulated losses and potential insolvency risks.
Fixed Assets	£0	No long-term assets owned; company relies entirely on current assets/liabilities.
Current Assets	£46,867	Includes cash and receivables, but insufficient to cover short-term debts.
Current Liabilities	£227,111	High short-term obligations relative to assets.
Average Employees	0	No employees other than directors, possibly low operational activity.
Share Capital	£100	Minimal equity invested by shareholders, limiting financial buffer.

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3. Diagnosis: What the Numbers Reveal

• Liquidity Distress: The company’s current liabilities are over four times the size of its current assets, indicating it may struggle to meet short-term obligations promptly—a classic symptom of cash flow distress.

• Negative Equity and Solvency Concern: Negative net assets suggest accumulated losses have eroded shareholder equity. This is a red flag akin to a patient showing chronic internal deterioration without recovery.

• No Fixed Assets: The absence of fixed assets suggests the company may have limited collateral or tangible value to leverage for borrowing or investment.

• Stagnation or Decline: The company has not improved its financial position over five years; rather, the negative working capital and net asset position are worsening, indicating ongoing financial strain.

• Operational Scale: With zero employees and minimal share capital, the company appears very small and may be operating with limited resources or on a project-by-project basis.

Overall, these symptoms point to a business struggling to maintain financial health, with a risk profile that requires urgent management attention.

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4. Recommendations: Steps to Improve Financial Wellness

• Improve Liquidity Management:

  • Prioritize reducing current liabilities by negotiating extended payment terms or restructuring debt.
  • Accelerate collections of receivables and increase cash reserves to build a healthy cash flow buffer.

• Capital Injection:

  • Consider increasing equity capital from existing shareholders or new investors to restore positive net assets and provide working capital.

• Cost Control and Operational Review:

  • Analyze operating expenses and reduce overheads to improve margins and cash flow.
  • Evaluate operational models given no employees are reported; outsourcing vs. hiring decisions may be critical.

• Asset Acquisition Strategy:

  • If feasible, invest in fixed assets that can generate stable income or collateral for financing, improving long-term stability.

• Financial Monitoring and Reporting:

  • Implement regular internal financial reviews to catch early signs of distress and adjust strategies promptly.
  • Seek professional advice to explore restructuring options if insolvency risk increases.

• Explore Revenue Growth Opportunities:

  • As a real estate agency, focus on expanding client base and services to increase turnover, which can improve liquidity and profitability.

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