Company Number: 13345781

Analysis Date: 2025-07-29 13:15 UTC

1. Risk Rating: MEDIUM
   While KAP Technical Services Limited remains active with no overdue filings and positive net current assets, the sharp decline in net assets and introduction of significant long-term liabilities raise moderate solvency concerns. The small equity base and reliance on director loans indicate some financial vulnerability.

2. Key Concerns:

• Net assets have dropped materially from £12,020 in 2023 to just £600 in 2024, signaling erosion of equity and potential solvency risk.
• The company has taken on £20,000 of bank loans repayable after one year, which could pressure future liquidity given modest cash balances.
• Profit and loss account details are not publicly filed, limiting transparency on profitability and operational sustainability.

3. Positive Indicators:

• The company maintains positive net current assets (£20,600) and cash of £31,603, indicating adequate short-term liquidity.
• No overdue accounts or confirmation statements, showing compliance with Companies House filing requirements.
• Stable employee count of 5 suggests operational continuity without significant downsizing.

4. Due Diligence Notes:

• Investigate the cause of the sharp decline in net assets and the nature/use of the £20,000 bank loan including repayment terms and covenants.
• Obtain or review the profit and loss account and cash flow statements to assess operational performance and cash generation capability.
• Confirm director loans and related party transactions for any potential conflicts or financial risks.
• Review contracts and client base under SIC code 78109 to evaluate business sustainability in employment placement activities.