KAIZEN PRO LTD

Executive Summary

Kaizen Pro Ltd is a micro-sized education services company with very limited financial resources and declining turnover. Its fragile balance sheet and minimal cash flow capacity do not support credit extension at this time. Without significant improvement in revenue generation or capital support, the risk of default is high, leading us to decline credit facilities currently.

KAIZEN PRO LTD - Analysis Report

Company Number: 13601361

Analysis Date: 2025-07-29 12:19 UTC

1. Credit Opinion: DECLINE

Kaizen Pro Ltd is a very small private limited company in the education sector, incorporated in 2021 with minimal financial activity. The latest accounts show an extremely low turnover (£4,683 for the year ended Sep 2023) and minimal net assets (£256). The company’s financials have deteriorated sharply, with turnover dropping from £11,502 in 2022 to £4,683 in 2023, and net assets declining from £8,074 to £256. Such low levels of revenue and equity indicate an inability to generate sufficient cash flow to service debt or meet ongoing financial obligations reliably. The company is also reliant on a single director and has no employees beyond one, suggesting limited operational scale and management bandwidth. Given these factors, the company demonstrates very weak financial strength and insufficient cash resources to support new credit.

2. Financial Strength:

The balance sheet is extremely thin with negligible current assets (£256 cash) and net assets of the same amount, showing no fixed assets or other resources. The company exhibits a significant contraction in working capital and equity over the last 12 months. The absence of tangible or intangible fixed assets and minimal retained earnings signal a fragile capital structure. The company is clearly micro-sized and at a very early stage of development with little financial cushion or resilience to absorb shocks. This weak financial foundation heightens credit risk substantially.

3. Cash Flow Assessment:

Cash holdings of £256 are very low, and turnover is insufficient to generate meaningful operational cash flow. The company’s net current assets equal cash only, indicating that it has no receivables, inventory, or other liquid assets to support working capital needs. Administrative expenses almost fully consume turnover, leaving a very small operating profit (£256). The lack of cash flow from operations and minimal liquidity position suggests the company cannot internally fund growth or comfortably meet short-term liabilities without external support.

4. Monitoring Points:

• Turnover and profitability trends: Watch if the company can increase revenue and generate sustainable profits.
• Cash and working capital levels: Any further decline will worsen liquidity risk.
• Director involvement and any changes in management: Given the reliance on a sole director, any changes could impact continuity.
• Filing of accounts and confirmation statements: Timely filings indicate compliance and operational status.
• External funding or shareholder support: Any capital injections would improve financial flexibility but none have been indicated.