Company Number: 14469972

Analysis Date: 2025-07-20 13:11 UTC

1. Risk Rating: MEDIUM
   Kaku Trading Limited presents a modest positive net asset position but operates with very tight working capital and a minimal equity base, which elevates its solvency and liquidity risk given the company's infancy and limited financial history.

2. Key Concerns:

• Thin Net Current Assets: Net current assets are only £1,239, indicating almost no buffer between current assets (£314,217) and current liabilities (£312,978), which could threaten short-term liquidity.
• High Trade Creditors Relative to Debtors and Cash: Trade creditors (£300,335) constitute the vast majority of current liabilities, closely matching the debtors (£160,000) and cash (£154,217), suggesting reliance on supplier credit and limited cash reserves.
• No Employees and Limited Operating History: With zero employees and incorporation less than two years ago, operational stability and sustainability are unproven, raising questions about the business model and revenue generation capability.

3. Positive Indicators:

• No Overdue Filings: The company is up to date with both accounts and confirmation statement filings, indicating regulatory compliance and good governance practices.
• Significant Control Concentrated in One Director: Mr. Christopher Kuo holds 75-100% of shares and voting rights, which may facilitate swift decision-making and aligned control.
• Substantial Current Assets vs Shareholders’ Funds: Current assets of £314,217 compared to shareholders’ funds of £1,239 suggest the company has resources to fund ongoing operations in the short term.

4. Due Diligence Notes:

• Investigate the nature and collectability of the £160,000 debtors balance to assess cash flow reliability.
• Clarify the terms and maturity profile of the trade creditors to evaluate liquidity risk in the near term.
• Understand the business model and revenue streams given the absence of employees and the SIC classification as "Other business support service activities not elsewhere classified."
• Review any director loans or related party transactions beyond the £207 disclosed to assess financial support and potential conflicts.
• Confirm the company's plans for growth and operational scaling to mitigate risks related to its startup phase.