KAELLISE LTD

Executive Summary

KAELLISE LTD shows strong financial health typical of a well-managed micro-entity with growing equity and robust liquidity. The company benefits from a solid cash position and simple structure but faces risks related to its concentrated ownership and lack of employees. Strategic steps towards operational expansion and risk diversification will enhance its financial resilience and growth potential.

KAELLISE LTD - Analysis Report

Company Number: 13990029

Analysis Date: 2025-07-20 12:04 UTC

Financial Health Assessment of KAELLISE LTD

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1. Financial Health Score: B

Explanation:
KAELLISE LTD demonstrates a solid foundation with positive net assets and strong working capital for a micro-entity. The company’s equity has grown significantly within a short period, indicating healthy capital accumulation. However, the limited scale and absence of employees suggest early-stage development, leaving room for operational expansion and risk diversification.

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2. Key Vital Signs

Metric	2023 (£)	2024 (£)	Interpretation
Fixed Assets	1,217	1,070	Stable but minimal investment in long-term assets; typical for a consultancy micro-entity.
Current Assets	14,453	39,422	Significant increase indicates improved liquidity and cash or receivables availability.
Net Current Assets	14,453	39,422	Positive working capital ("healthy cash flow reserves") ensures the company can meet short-term obligations comfortably.
Total Net Assets (Equity)	15,670	40,492	Equity has grown over 2.5 times, reflecting retained earnings or capital injections — a positive "growth symptom."
Employees	0	0	No employees signify a very lean operation or sole director management; may limit scalability.

Additional Notes:

• The company is classified as a micro-entity, meaning simplified reporting and low complexity.
• No audit required, reflecting low risk in regulatory terms but also less external assurance.
• The director holds 75-100% control, indicating concentrated ownership which can be both a strength (quick decisions) and a risk (dependency on one person).

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3. Diagnosis: Financial Condition and Business Health

KAELLISE LTD presents vital signs of a financially stable and well-capitalised start-up or early-stage business. The healthy increase in net current assets ("working capital") and shareholders’ funds ("equity") over a single year suggests good financial management and possibly positive cash generation, despite no employees being reported.

The absence of fixed asset growth or operational staff might be a "symptom" of a consultancy business model relying heavily on intellectual capital rather than physical assets or large teams. This is typical for management consultancy activities other than financial management (SIC 70229).

No off-balance sheet liabilities and compliance with filing deadlines indicate no regulatory distress. The "healthy cash flow" indicated by current assets exceeding liabilities means the company can meet its short-term debts comfortably, a positive sign of liquidity.

However, the concentrated ownership and lack of operational staff could mean the company is vulnerable to key person risk and limited operational capacity, which might restrict growth potential unless addressed.

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4. Recommendations: Steps to Improve Financial Wellness

• Operational Growth: Consider hiring or contracting additional skilled personnel to diversify expertise and reduce reliance on the sole director. This will help scale operations and reduce key person risk.
• Asset Investment: Evaluate the potential benefit of investing in technology or other fixed assets that could enhance service delivery efficiency or competitive advantage.
• Financial Planning: Maintain robust cash flow forecasts to ensure continued liquidity, especially if business expands or takes on new contracts.
• Risk Management: Develop a contingency plan for key person risk given the ownership concentration, such as designating deputies or succession planning.
• Business Development: Explore strategic partnerships or marketing initiatives to increase client base and revenue streams, leveraging the strong financial foundation.
• Compliance: Continue timely filing of accounts and confirmation statements to avoid penalties and maintain good standing with Companies House.

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