KAP TECHNICAL SERVICES LIMITED
Executive Summary
KAP Technical Services Limited is a small, active private company operating within the employment placement sector, with no overdue statutory filings and positive working capital. However, the significant reduction in net assets coupled with the recent introduction of long-term debt warrants caution regarding solvency and operational resilience. Further financial details and loan terms should be reviewed to fully assess the company's financial health.
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This analysis is opinion only and should not be interpreted as financial advice.
KAP TECHNICAL SERVICES LIMITED - Analysis Report
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.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.
- 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.
- 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.
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