KARR PROPERTY LTD

Executive Summary

KARR PROPERTY LTD exhibits a stable and growing financial position with positive working capital and increasing net assets, indicating healthy liquidity and operational growth typical of a micro-entity. While the company’s financial “vital signs” are good, building stronger capital reserves and monitoring liabilities closely will be essential to sustain growth and guard against future financial stress. Maintaining rigorous cash flow management and preparing for operational scale-up are recommended to support continued financial wellness.

KARR PROPERTY LTD - Analysis Report

Company Number: 12456320

Analysis Date: 2025-07-20 15:48 UTC

Financial Health Assessment Report for KARR PROPERTY LTD
As of 29 February 2024

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1. Financial Health Score: B

Explanation:
KARR PROPERTY LTD demonstrates a stable and improving financial position typical of a growing micro-entity. The company’s net current assets and shareholders’ funds have more than doubled over the last year, indicating healthy growth and improved liquidity. However, the modest scale of operations and minimal share capital (£1.00) limit the overall robustness. The absence of liabilities beyond current debts and no audit requirements are consistent with micro-entity status but warrant ongoing vigilance as the business expands.

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2. Key Vital Signs

Metric	2024 Value (£)	2023 Value (£)	Interpretation
Current Assets	117,760	51,541	Healthy increase, indicating growing cash/debtors/inventory
Current Liabilities	107,945	46,852	Increase in short-term obligations, but manageable
Net Current Assets	9,815	4,689	Positive working capital, a vital sign of liquidity
Net Assets (Shareholders’ Funds)	9,815	4,689	Growth in equity, showing retained earnings or capital injection
Share Capital	1.00	1.00	Minimal capital, typical for micro entities
Average Number of Employees	1	1	Small scale operation, manageable overhead

Interpretation:

• Liquidity ("Healthy blood flow"): The company maintains positive net current assets, indicating it can cover its short-term debts with available assets, a good sign of operational stability.
• Growth ("Vital signs strengthening"): The doubling of net assets and current assets highlights business expansion or improved asset management.
• Capital Structure ("Modest immunity"): The minimal share capital suggests the company relies heavily on operational cash flow rather than equity; this is common for small enterprises but may restrict large investments or borrowing capacity.

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3. Diagnosis

KARR PROPERTY LTD presents as a financially stable micro-entity with positive working capital and growing net assets. The company’s financial statements reflect a sound liquidity position, with current assets exceeding current liabilities, suggesting no immediate cash flow distress (“no symptoms of financial blockage”). The steady increase in net assets indicates either reinvested profits or capital injections, enhancing the company’s financial “immune system.”

The small scale (one employee, micro-entity status) means the company operates with lean resources, which might limit resilience against market shocks but also keeps operational overhead low. The absence of long-term liabilities and no audit requirements reduce complexity but also limit external oversight.

The company’s involvement in management consultancy and real estate management aligns with its financial posture, where working capital is critical to smooth operations and client servicing.

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4. Recommendations

To maintain and improve financial wellness, KARR PROPERTY LTD should consider the following actions:

• Monitor and Manage Liabilities: While current liabilities have increased, ensure these are aligned with revenue inflows to avoid liquidity strain. Consider negotiating longer payment terms with creditors if cash flow tightens.
• Build Capital Reserves: Explore ways to increase equity capital or retained earnings to strengthen the company’s financial foundation, enhancing capacity for growth or downturn resilience.
• Cash Flow Forecasting: Implement regular cash flow projections to anticipate short-term funding needs and avoid symptoms of distress such as late payments or overdrafts.
• Diversify Income Streams: Given the company’s dual SIC codes (management consultancy and real estate management), expanding service offerings may stabilize income and improve financial robustness.
• Prepare for Growth: As operations scale, reassess the need for audits, more comprehensive financial controls, and possibly additional staff to prevent operational bottlenecks.
• Maintain Compliance: Continue timely filing of accounts and confirmation statements to avoid penalties and maintain good standing with regulatory authorities.

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