Company Number: 13011703

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

1. Risk Rating: HIGH
   The company exhibits a persistent net liabilities position and negative working capital, indicating solvency and liquidity risks. Despite being active and compliant with filings, the financials reflect ongoing losses and a precarious financial position.

2. Key Concerns:

• Net Liabilities and Shareholders Deficit: Kali Print Ltd has consistently reported net liabilities over the past four years, worsening from approximately -£4,018 in 2022 to -£5,220 in 2023, indicating erosion of equity and financial instability.
• Negative Net Current Assets: The company’s working capital remains negative (-£4,488 in 2023), suggesting challenges in meeting short-term obligations. Although cash improved to £4,594 in 2023 from £94 in prior years, current liabilities remain substantial (~£9,735), signaling liquidity pressure.
• Dependence on Director Advances: The notes reveal director loans with a balance outstanding of approximately £4,946 owed by a director, which may indicate reliance on related party funding to support operations, a red flag for external investors regarding financial independence and risk exposure.

3. Positive Indicators:

• Compliance with Filings: The company has timely submitted accounts and confirmation statements, with no overdue filings, indicating sound regulatory compliance and governance adherence.
• Improved Cash Position: There was a marked improvement in cash holdings in the latest year (£4,594 vs. £94), which may reflect better cash management or operational improvements.
• Established Management: Directors and secretary have been stable since incorporation, potentially reflecting consistent leadership.

4. Due Diligence Notes:

• Review detailed profit and loss information (not included) to assess revenue trends, gross margins, and cost control measures.
• Investigate the nature and terms of director loans, including repayment plans and any security provided.
• Assess the company’s business model sustainability in printing (SIC 18129), examining market position and demand outlook.
• Confirm if there are any contingent liabilities or off-balance sheet obligations not disclosed in abridged accounts.
• Explore whether the company has access to external financing sources or government grants that could improve liquidity.