KANDAKA GROUP LTD

Executive Summary

Kandaka Group Ltd exhibits healthy initial financial stability with positive net assets and working capital typical of a micro-entity in its first year. The company currently operates as a holding entity with no employees or trading activity, indicating an early-stage or passive status. Focused development of operational activities and enhanced governance will be key to improving its financial wellness and growth potential.

KANDAKA GROUP LTD - Analysis Report

Company Number: 14692550

Analysis Date: 2025-07-29 12:27 UTC

Financial Health Assessment for Kandaka Group Ltd

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1. Financial Health Score: B

Explanation:
Kandaka Group Ltd exhibits a solid foundational financial position typical for a newly incorporated micro-entity. The company shows positive net current assets and net assets, indicating initial financial stability. However, limited operating history and absence of turnover or profit data constrain a higher grade. The score reflects a "healthy but nascent" financial status, with potential growth contingent on operational progress.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	7,848	Liquid resources available to meet short-term obligations; modest but positive for a startup.
Net Current Assets	7,848	Positive working capital indicating ability to cover short-term debts without liquidity strain.
Total Assets Less Current Liabilities	7,848	Reflects overall asset base net of immediate liabilities; consistent with current assets.
Net Assets (Shareholders Funds)	7,423	Equity attributable to owner; small but positive indicating initial capital injection or retained earnings.
Accruals and Deferred Income	(425)	Minor liabilities or income recognized in advance; typical in early-stage companies.
Average Number of Employees	0	No staff employed yet, implying low overhead but also limited operational activity.

• Age of Company: Incorporated Feb 2023, accounts cover first year ending Feb 2024.
• Account Category: Micro-entity, with simplified reporting and minimal filings.
• Industry: Holding company activities (SIC 64209), often means passive ownership/control rather than active trading.

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3. Diagnosis

• Healthy Cash Flow Indicators: Positive net current assets with no overdue filings or liabilities suggest no immediate liquidity distress. The company appears solvent with sufficient working capital for current needs.
• Symptoms of Early Stage: The absence of employees and no reported turnover or profit/loss data imply the company may not have commenced full trading operations or is in a holding/investment phase.
• Financial Resilience: Equity supports the balance sheet, but the small asset base means vulnerability to unexpected expenses or delays in income generation.
• Governance: Single director and 100% ownership concentrated in one individual, providing clear control but also potential concentration risk dependent on the director’s management capacity.

Overall, Kandaka Group Ltd shows the vital signs of a financially stable startup or holding entity, with no immediate red flags but limited operational data to assess profitability or growth trajectory.

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4. Recommendations

1. Operational Development:
   Initiate or accelerate core business activities to generate revenue streams and build operational history. This will improve cash flow and justify future investment or borrowing if needed.

2. Financial Monitoring:
   Maintain disciplined cash management to preserve positive net current assets. Monitor accruals and liabilities carefully to avoid liquidity issues.

3. Governance and Risk Management:
   Consider appointing additional directors or advisors to diversify management oversight and reduce operational risk tied to a single individual.

4. Financial Reporting:
   Plan for fuller financial disclosures as the business grows, including profit and loss accounts, to provide a clearer picture of business performance to stakeholders.

5. Strategic Planning:
   Develop a roadmap for growth, including potential investments, markets, or acquisitions consistent with holding company activities, to leverage current capital and assets.

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