KABTEK LTD

Executive Summary

Kabtek Ltd is a micro-entity operating with positive net assets and up-to-date filings, reflecting regulatory compliance and solvency on paper. However, the substantial director’s advances and declining working capital raise moderate concerns about liquidity and operational stability. Further investigation into cash flows and director funding arrangements is recommended to fully assess financial resilience.

KABTEK LTD - Analysis Report

Company Number: 13167727

Analysis Date: 2025-07-29 20:54 UTC

1. Risk Rating: MEDIUM

The company shows a positive net asset position and no overdue filings, but there are several risk factors due to its micro-entity scale, director-related balances, and a noticeable reduction in net current assets year-on-year.

2. Key Concerns:

• Director’s Advances: There is a significant outstanding balance (£67,425) due from the director to the company, which has decreased but remains material relative to total assets. This can indicate reliance on director funding with potential liquidity risk if repayment is not forthcoming.
• Declining Net Current Assets: Net current assets have fallen from £83,983 in 2023 to £40,510 in 2024, suggesting a reduction in working capital which could impair short-term liquidity.
• Small Scale and Limited Financial Disclosure: Being a micro-entity, the company’s accounts are unaudited and provide limited financial detail. This restricts the ability to comprehensively assess operational performance and sustainability.

3. Positive Indicators:

• Solvent Position: The company maintains positive shareholders’ funds (£41,279) and total assets exceed current liabilities.
• Compliance: All statutory filings (accounts and confirmation statements) are up to date with no overdue notices, indicating good regulatory compliance.
• Controlled Ownership: Two PSCs each hold between 25-50% ownership and voting rights, suggesting clarity and stability in control.

4. Due Diligence Notes:

• Investigate the nature and terms of the director’s advances, including any formal agreements, repayment schedules, and the impact on cash flow.
• Review detailed cash flow statements or bank statements if available, to understand liquidity trends beyond balance sheet snapshots.
• Assess the company’s revenue streams, profitability, and business model sustainability, especially given the micro-entity status with only one average employee.
• Confirm whether the company has any contingent liabilities or off-balance-sheet obligations not disclosed in the micro-entity accounts.
• Monitor for any changes in director appointments or control, as the company is closely held.