KALLANISH INDEX SERVICES LIMITED

Executive Summary

Kallanish Index Services Limited exhibits a high financial risk profile characterized by substantial negative working capital and shareholders’ funds, alongside increased reliance on related party funding. While the company complies with filing obligations and has invested in intangible assets, limited transparency due to exemption from audit and lack of profitability data constrains a full assessment. Further due diligence is recommended to clarify liquidity arrangements and operational viability.

KALLANISH INDEX SERVICES LIMITED - Analysis Report

Company Number: 13557587

Analysis Date: 2025-07-19 12:41 UTC

1. Risk Rating: HIGH
   Justification: Kallanish Index Services Limited shows a significant and growing net current liability position (£299k in 2023, up from £43k in 2022), negative shareholders funds (£101k negative), and reliance on financial support from its parent company. The company is not generating sufficient internal resources to cover short-term obligations, indicating elevated solvency and liquidity risks.

2. Key Concerns:

• Negative Working Capital and Shareholders’ Funds: The company’s current liabilities far exceed current assets, highlighting potential difficulties in meeting short-term obligations without external funding. This situation deteriorated markedly from 2022 to 2023.
• Dependence on Parent Company Funding: Owed amounts to the parent company increased significantly to £295k, interest-free and repayable on demand, indicating reliance on related party support for liquidity rather than operational cash flow.
• Lack of Audit and Limited Financial Disclosure: As a small company filing under exemption, the absence of audited accounts and no published income statement limits transparency on operational performance and profitability, complicating risk assessment.

3. Positive Indicators:

• No Filing Overdue: The company is current with statutory accounts and confirmation statement filings, reflecting compliance with regulatory requirements.
• Active Operational Website and Contact Details: Presence of an active website and multiple contact points suggests ongoing business activity and market presence.
• Capital Investment in Intangible Assets: Substantial investment in website development (£198k net book value) may support future revenue generation and business sustainability.

4. Due Diligence Notes:

• Verify the nature and terms of amounts owed to and from related parties, particularly the parent company and subsidiary in Singapore, to understand liquidity support arrangements.
• Assess the company’s cash flow forecasts and going concern assumptions given the negative net assets and working capital deficits.
• Seek management commentary or internal reports on operational performance, revenue streams, and plans to address financial deficits.
• Confirm absence of director disqualifications or regulatory actions given limited publicly available governance data.
• Investigate whether the company has access to external financing or plans to raise capital to improve solvency.