KAT LIFE FILMS & CONSULTING (UK) LIMITED

Executive Summary

The latest financial data for KAT LIFE FILMS & CONSULTING (UK) LIMITED shows significant distress, with a sharp drop in net assets and a working capital deficit indicating liquidity challenges. Prompt measures to boost cash flow and control costs are critical to restore financial stability and avoid insolvency risks.

KAT LIFE FILMS & CONSULTING (UK) LIMITED - Analysis Report

Company Number: 12513851

Analysis Date: 2025-07-29 20:18 UTC

Financial Health Assessment: KAT LIFE FILMS & CONSULTING (UK) LIMITED

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1. Financial Health Score: D

Explanation:
The company’s financial health has significantly deteriorated in the latest financial year (2023-24), showing symptoms of distress such as negative net current assets (working capital deficit) and a sharp decline in net assets. This indicates potential liquidity issues and weakened financial stability, warranting close attention and corrective action.

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2. Key Vital Signs

Vital Sign	2024 Value	Interpretation
Fixed Assets	£498	Very low, indicating minimal investment in long-term resources.
Current Assets	£218	Extremely low, suggesting limited cash or receivables to cover short-term obligations.
Current Liabilities	£600	Increased from zero in prior years, leading to a working capital deficit.
Net Current Assets	-£382	Negative working capital signals cash flow strains and potential inability to meet short debts.
Total Assets Less Current Liabilities	£116	Very low net asset base compared to £2,248k last year, showing erosion of company value.
Net Assets / Shareholders’ Funds	£116	Drastically reduced, reflecting accumulated losses and financial stress.
Share Capital	£1	Minimal share capital, typical for a micro entity but limits equity buffer.
Employee Count	0	No employees, indicating small scale or possible reliance on director/contractors.

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3. Diagnosis: Financial Condition Overview

The company exhibits clear symptoms of financial distress in its latest year:

• Liquidity Crisis: The working capital has swung from a healthy positive (£1,251k in 2023) to a negative position (-£382k in 2024). This suggests the company may struggle to pay its immediate debts, akin to a patient showing signs of dehydration and electrolyte imbalance—a warning sign that urgent hydration (cash infusion) is needed.

• Asset Depletion: Fixed assets have halved, and current assets have sharply fallen by over 80%, indicating asset sales or write-downs possibly to cover liabilities. This resembles a patient losing vital organ function, signaling deeper systemic issues.

• Erosion of Net Worth: Net assets have plummeted from £2.25 million to merely £116, reflecting accumulated losses or write-offs. This is like a patient’s immune system severely weakened, reducing resilience against external shocks.

• No Operational Workforce: Zero employees suggest reliance on the director or outsourced services, possibly limiting operational capacity and scalability.

• Ownership and Control: Single director and 100% shareholder control by Kathryn Holmes ensures swift decision-making but may also limit external oversight or fresh capital injection.

Overall, the company’s financial health is critically impaired, with symptoms indicating tight cash flow, depleted resources, and increased risk of operational disruption if the situation persists.

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4. Recommendations: Steps to Improve Financial Wellness

1. Cash Flow Stabilization:
   Inject working capital through shareholder loans, equity funding, or securing short-term credit facilities to restore liquidity and prevent insolvency risk. Think of this as administering IV fluids to stabilize a dehydrated patient.

2. Cost Rationalization:
   Review and reduce overheads and discretionary expenses to conserve cash. Eliminate non-essential costs and negotiate payment terms with creditors.

3. Revenue Generation Strategies:
   Accelerate efforts to increase sales or consulting engagements. Diversify client base and explore alternative revenue streams to improve cash inflows.

4. Asset Utilization Review:
   Assess the necessity of current fixed assets and consider whether further disposals or leasing arrangements might help unlock cash without impairing operations.

5. Financial Monitoring:
   Implement rigorous budgeting, forecasting, and cash flow monitoring to detect early warning signs and manage financial health proactively.

6. Seek Professional Advice:
   Engage financial or restructuring advisors to explore turnaround strategies or refinancing options before liquidity issues worsen.

7. Director’s Commitment:
   Given sole control, the director should prepare a recovery plan, maintain transparent communication with creditors, and consider contingency plans if financial distress deepens.

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Executive Summary

The company’s financial health has deteriorated sharply in the latest year, revealing symptoms of liquidity distress and asset depletion. Immediate action to stabilize cash flow and reduce costs is essential to prevent further decline. Without intervention, the risk of insolvency rises, but with focused financial management and strategic planning, recovery is possible.