KAIRON LIMITED

Executive Summary

Kairon Limited is a small, active private company with a positive net asset base and adequate working capital. However, the decline in liquidity and net assets over the last year requires conditional credit approval with close ongoing monitoring of cash flow, debtor management, and overall financial performance. With prudent financial stewardship, the company shows potential to service debt obligations.

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Company Analysis

This analysis is opinion only and should not be interpreted as financial advice.

KAIRON LIMITED - Analysis Report

Company Number: 13922354

Analysis Date: 2025-07-29 20:17 UTC

  1. Credit Opinion: CONDITIONAL APPROVAL
    Kairon Limited is a newly incorporated private limited company (since 2022) classified as a small company under the total exemption full accounts regime. The company shows a positive net asset position and net current assets, indicating a sound balance sheet. However, the year-on-year decline in net assets from £127.2k (2023) to £94.6k (2024) and a reduction in cash and debtors raise some concerns about its financial trajectory and liquidity. The company remains active with no overdue filings and directors appear stable and experienced. Approval for credit facilities can be considered provided ongoing monitoring and covenant conditions are applied due to the company’s early stage and signs of declining working capital.

  2. Financial Strength

  • Net Assets decreased by approximately £32.6k (25.6%) from £127.2k to £94.6k over the last financial year.
  • Fixed assets increased modestly due to investment in intangible assets (£10.5k) and new investments (£2.6k).
  • Current assets declined from £195.5k to £125.4k, primarily driven by lower cash balances (£119.5k to £83.0k) and trade debtors (£72.2k to £37.5k).
  • Current liabilities decreased from £75.9k to £44.6k, improving net current assets to £80.8k but still lower than prior year.
  • Shareholders funds remain positive at £94.5k with no indication of losses requiring recapitalization.
    Overall, the balance sheet remains healthy but the reduction in liquidity and net assets warrants caution.
  1. Cash Flow Assessment
  • Cash at bank reduced by £36.5k from £119.5k to £83.0k, which could indicate increased operational outflows or investment activities.
  • Debtor balances have fallen sharply by almost 50%, which may reflect improved collections or declining sales; clarity needed.
  • Current liabilities also fell substantially, suggesting some creditor payments or restructuring.
  • Net current assets remain positive at £80.8k, indicating adequate working capital to meet short-term obligations.
  • Directors’ loan account shows a small balance repaid within 9 months, indicating no immediate reliance on director funding.
    Liquidity is sufficient for current operations but trends should be monitored closely.
  1. Monitoring Points
  • Track cash flow and working capital trends quarterly to detect any early liquidity stress.
  • Monitor debtor ageing and credit control effectiveness to ensure timely collections.
  • Watch any further decline in net assets or profitability which could impact equity cushions.
  • Review any changes in director or shareholder control that may affect governance or credit risk.
  • Given the company’s young age, assess operational progress and business model viability regularly.

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