KAMS PROPERTY DEVELOPMENT LTD

Executive Summary

KAMS PROPERTY DEVELOPMENT LTD is a recently incorporated micro-entity with significant solvency and liquidity concerns evidenced by minimal net assets and a sharp decline in current assets within less than a year. While regulatory compliance appears sound and ownership is tightly held, the financial data suggests a fragile operational position requiring further investigation into cash flows and asset management. Caution is advised for investors until additional due diligence clarifies the company’s financial stability and business outlook.

KAMS PROPERTY DEVELOPMENT LTD - Analysis Report

Company Number: 15087464

Analysis Date: 2025-07-29 14:44 UTC

1. Risk Rating: HIGH
   Justification: The company shows an extremely low net asset base (£4) and current assets barely exceeding current liabilities as of the latest accounting period. The significant deterioration from prior periods (where shareholders' funds were negative) and minimal working capital suggest high solvency and liquidity risk for this property development company.

2. Key Concerns:

• Minimal Net Assets and Working Capital: Only £4 in shareholders’ funds and £1,183 current assets against £1,179 current liabilities indicate very limited financial buffer to absorb shocks or meet short-term obligations.
• Rapid Decline in Reported Assets: The current assets dropped from £156,969 in August 2024 to just £1,183 in March 2025, signaling possible asset disposals or cash depletion. This sharp decline may reflect operational or financial distress.
• Negative Equity History: Previously reported negative shareholders’ funds (-£4,488) raise concerns over initial capitalization adequacy and ongoing capital support from owners.

3. Positive Indicators:

• Compliance with Filing Obligations: No overdue accounts or confirmation statements, demonstrating good regulatory compliance and governance discipline.
• Controlled Ownership and Management: Both directors and persons with significant control are the same individuals (the Sheridans), potentially ensuring aligned interests and swift decision-making.
• Micro Entity Filing Status: The company benefits from simplified reporting requirements consistent with its small size, reducing administrative burden.

4. Due Diligence Notes:

• Investigate the nature and cause of the drastic reduction in current assets between August 2024 and March 2025, including any asset sales or transfers.
• Review cash flow statements and bank reconciliations (if available) to assess liquidity trends and operational cash generation.
• Examine any off-balance sheet liabilities or contingent risks not captured in the micro-entity accounts.
• Confirm whether there are any planned capital injections or shareholder loans to support solvency.
• Assess the directors’ strategic plans and financial forecasts to understand business sustainability and growth prospects.