KALI PRINT LTD

Executive Summary

Kali Print Ltd demonstrates significant financial distress, marked by sustained net liabilities and negative working capital, raising solvency and liquidity concerns. While the company maintains regulatory compliance and shows some improvement in cash reserves, reliance on director advances and the absence of positive equity pose material risks to financial stability. Further due diligence on operational performance and funding arrangements is recommended before investment consideration.

KALI PRINT LTD - Analysis Report

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.