KARMATCG LTD

Executive Summary

KARMATCG LTD presents a solid credit profile characterized by strong liquidity, growing net assets, and sound financial management under a single director’s control. Operating as a micro-entity in internet retail, the company shows low risk for lending purposes with a stable business trajectory. Continued monitoring of liabilities and compliance filings is recommended to maintain creditworthiness.

KARMATCG LTD - Analysis Report

Company Number: 13127067

Analysis Date: 2025-07-20 15:58 UTC

1. Credit Opinion: APPROVE
   KARMATCG LTD demonstrates strong balance sheet growth and a healthy liquidity position, indicating it can service debt obligations effectively. The company has no overdue filings and maintains a positive net asset position with increasing shareholders’ funds over the last three years. The single director holds full control, and there are no red flags regarding governance or legal status. As a micro-entity operating in a low-risk retail internet sales sector, credit risk is minimal.

2. Financial Strength:
   The company’s net assets have grown from £87,531 in 2022 to £161,146 in 2024, showing a steady strengthening of financial resources. Fixed assets are minimal at £3,739, appropriate for an internet retail business, with a robust increase in current assets (£136,566 in 2024). The presence of long-term creditors (£22,054) is manageable given the overall asset base. Shareholders’ funds fully support the balance sheet, indicating no excessive leverage.

3. Cash Flow Assessment:
   Net current assets of £135,353 in 2024 reflect strong working capital and liquidity, with current liabilities showing negative values which likely represent prepayments or credit balances rather than debts, further enhancing liquidity. The company employs one person, keeping operational costs low. Cash flow appears stable and sufficient to meet short-term obligations without strain.

4. Monitoring Points:

• Continued growth in net assets and working capital to support expansion or absorb shocks.
• Monitor any changes in long-term liabilities that could affect leverage or cash flow.
• Watch for timely filing of accounts and confirmation statements to ensure regulatory compliance.
• Review director’s financial conduct and any changes in ownership or control that might impact governance.