KANDOU CRAFTS LTD

Executive Summary

Kandou Crafts Ltd is a small, micro-entity private limited company with a stable ownership structure and positive net current assets, indicating an ability to meet short-term obligations. While compliance and operational stability appear sound, the decline in net assets and limited financial disclosure warrant further review. Overall, the company presents a low risk profile but merits further due diligence on profitability and cash flow.

KANDOU CRAFTS LTD - Analysis Report

Company Number: 13182763

Analysis Date: 2025-07-29 17:26 UTC

1. Risk Rating: LOW
   Kandou Crafts Ltd demonstrates solid net asset levels relative to its size and industry classification. The company has filed all required accounts and confirmation statements on time with no overdue filings. Financial indicators show positive net current assets and net assets, suggesting the company can meet its short-term liabilities.

2. Key Concerns:

• Declining Net Assets: Net assets decreased from £21,298 in 2023 to £16,245 in 2024, indicating a reduction in financial buffer that warrants monitoring.
• Limited Share Capital: With only £10 share capital, the company’s equity base is minimal, which may constrain capital raising or resilience to shocks.
• Micro-Entity Reporting: As a micro-entity, the company files abbreviated accounts with limited financial disclosures, restricting detailed analysis of profitability and cash flow.

3. Positive Indicators:

• Positive Working Capital: Net current assets remain positive (£15,303 in 2024), indicating the company currently holds sufficient short-term assets to cover liabilities.
• Compliance: All statutory filings are up to date with no overdue returns or accounts. This indicates good governance and regulatory compliance.
• Stable Ownership and Management: Directors and persons of significant control have been consistent since incorporation, suggesting operational stability.
• Industry Focus: The company operates in manufacture of soft furnishings, a niche that may benefit from specialised market positioning.

4. Due Diligence Notes:

• Investigate the cause of the year-on-year decline in net assets to assess operational profitability and any one-off costs or write-downs.
• Request management accounts or cash flow statements to assess liquidity beyond balance sheet snapshots.
• Clarify the extent of reliance on the two directors and their operational roles, including succession planning and risk from key-person dependency.
• Review customer concentration and order book to understand revenue stability given the small scale of operations.
• Confirm any off-balance sheet liabilities or contingent risks not visible in micro-entity filings.