KAMINSKIS SOLUTIONS LTD
Executive Summary
Kaminskis Solutions Ltd shows a stable but fragile financial condition typical of a startup micro-entity with minimal assets and working capital. Although solvent and compliant, the company has limited financial resources, requiring strategic capital strengthening and improved financial reporting for sustainable growth. Timely action to build liquidity and monitor operational performance will enhance its financial resilience.
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This analysis is opinion only and should not be interpreted as financial advice.
KAMINSKIS SOLUTIONS LTD - Analysis Report
Financial Health Assessment for Kaminskis Solutions Ltd (as at 29 February 2024)
1. Financial Health Score: C
Explanation:
Kaminskis Solutions Ltd exhibits very modest financial resources with a small positive net asset base (£598) and net current assets (£598). While the company is currently solvent and has no overdue filings, the scale of its financial position is minimal. This suggests a very early-stage or low activity business, typical of a micro-entity. The score reflects a stable but fragile condition, where the company is not showing distress but has very limited financial "reserves" or buffer to absorb shocks.
2. Key Vital Signs
Metric | Value | Interpretation |
---|---|---|
Current Assets | £9,655 | Cash and receivables available are low but positive. |
Current Liabilities | £9,057 | Short-term debts nearly equal current assets, leaving minimal liquidity margin. |
Net Current Assets (Working Capital) | £598 | Small positive working capital indicates the company can meet short-term obligations, but just barely. |
Net Assets (Equity) | £598 | Positive but very low equity, implying limited retained earnings or capital injection. |
Shareholders’ Funds | £598 | Equity held by owner reflects the net asset position, showing no debt beyond current liabilities. |
Profit & Loss Account | Not disclosed | No profit/loss data available; performance unknown. |
3. Diagnosis: What the Numbers Reveal
Healthy Cash Flow?
The company's net current assets of £598 show a slight positive liquidity, akin to a pulse that is weak but steady. This means the company can cover its immediate debts but does not have much breathing room.Symptoms of Financial Fragility:
The minimal equity and net assets suggest the business is in its infancy or has had very limited operational activity in its first year. No fixed assets or significant investments are recorded, which could indicate a low capital intensity or early startup phase.Absence of Profit and Loss Data:
Without a profit and loss account, it’s challenging to assess profitability or operational efficiency. This gap is a symptom of limited financial transparency at this stage.No Overdue Filings:
Compliance is on schedule, indicating good governance discipline which is a positive sign.Industry Context:
Operating in "Other specialised construction activities" and "Construction of domestic buildings" sectors, the company is in an industry that can be capital intensive and cyclical. Early-stage financial caution is prudent.
4. Recommendations: Steps to Improve Financial Wellness
Build Financial Cushion:
Aim to increase net current assets by boosting cash reserves or reducing short-term liabilities. Healthy working capital is like a strong heartbeat that sustains business operations smoothly.Develop Profit & Loss Reporting:
Transition from micro-entity filleted accounts to fuller accounts with profit and loss details to monitor operational health and enable better decision-making.Strategic Capital Injection:
Consider equity investment or shareholder loans to strengthen the balance sheet. This infusion is akin to administering a vitamin boost to enhance financial resilience.Monitor Industry Risks:
Construction is vulnerable to economic cycles and cash flow timing issues. Maintain strict controls on project costs and payment schedules to avoid liquidity crunches.Plan for Growth:
As business scales, tracking key performance indicators (KPIs) such as gross margin, debtor days, and creditor days will help diagnose financial health proactively.Maintain Compliance Discipline:
Continue timely filings and corporate governance to avoid penalties or regulatory stress which could exacerbate financial symptoms.
Summary
Kaminskis Solutions Ltd is a micro-entity in its early operational stage with a modest positive net asset position and working capital. While it is currently solvent and compliant, its financial "heartbeat" is weak with minimal buffer to absorb shocks. Enhancing liquidity, increasing transparency with profit and loss reporting, and planning for capital support will be critical to strengthening its financial wellness and supporting future growth.
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