KAIZEN INITIATIVE LTD

Executive Summary

KAIZEN INITIATIVE LTD is a recently incorporated micro-entity operating in the education sector with limited operational history. The company currently presents a high risk profile due to negative net assets arising from director funding and a lack of employees or revenue generation. Continued monitoring and further review of its business model and funding arrangements are advised before considering investment.

KAIZEN INITIATIVE LTD - Analysis Report

Company Number: 15168905

Analysis Date: 2025-07-20 19:06 UTC

1. Risk Rating: HIGH
   The company shows a negative net asset position of £19,000 due to a director loan of £35,000 classified as creditors falling due after more than one year. This indicates insolvency on a balance sheet basis. With no employees and being newly incorporated in 2023, operational sustainability and liquidity are concerns.

2. Key Concerns:

• Insolvency risk: Negative net assets (£19,000) driven by a director loan of £35,000, indicating liabilities exceed assets.
• Liquidity risk: Current liabilities (£35,000) significantly exceed current assets (£16,000), suggesting short-term cash flow constraints.
• Operational status: No employees and only start-up costs incurred, indicating the business is at an early, unproven stage without revenue or established operations.

3. Positive Indicators:

• The company is compliant with filing requirements, with no overdue accounts or confirmation statements.
• The sole director and 100% shareholder is a named individual with entrepreneurial occupation, suggesting clear control and accountability.
• The business benefits from micro-entity accounting provisions, indicating limited external financial complexity at this stage.

4. Due Diligence Notes:

• Investigate the nature and terms of the £35,000 director loan, including repayment plans and funding sources.
• Review any business plans, contracts, or revenue forecasts to assess operational viability and growth prospects.
• Confirm the company’s strategic approach to moving from start-up phase to generating sustainable income, given zero employees and early stage.
• Validate that no other undisclosed liabilities or contingent risks exist beyond the reported figures.
• Monitor ongoing compliance and filings for any changes in status or financial health.