KATAKANA ENTERPRISES LIMITED

Executive Summary

Katakana Enterprises Limited demonstrates a low risk profile supported by improving net current assets and full regulatory compliance. However, limited operating scale, lack of employees, and concentrated family ownership warrant further due diligence on operational sustainability and governance. Overall, the company appears financially solvent with no immediate liquidity concerns but requires additional insight into business activities and future prospects.

KATAKANA ENTERPRISES LIMITED - Analysis Report

Company Number: 14428406

Analysis Date: 2025-07-29 13:03 UTC

1. Risk Rating: LOW
   Justification: Katakana Enterprises Limited shows a positive net current asset position that has improved year-on-year. The company is compliant with filing deadlines and is not currently undergoing any insolvency proceedings. The company operates on a micro scale, which limits financial complexity and exposure.

2. Key Concerns:

   • Lack of Operating Employees: The company reported zero employees for the last two years, which may indicate minimal operational capacity or reliance on directors only. This could raise concerns about sustainable business operations or growth potential.
   • Limited Financial Disclosure: As a micro-entity, the accounts are unaudited and provide limited insight into profitability, cash flows, or contingent liabilities. This restricts detailed financial analysis.
   • Concentrated Ownership and Management: The company’s shares and voting rights are controlled entirely by three individuals with the same surname, potentially limiting governance diversity and increasing related party risks.

3. Positive Indicators:

   • Improving Financial Position: Net current assets rose significantly from £8,019 in 2023 to £19,713 in 2024, indicating strengthening liquidity and solvency.
   • Timely Filing and Compliance: Both accounts and confirmation statements are up to date with no overdue filings, reflecting good regulatory compliance.
   • Stable Directorship: The board includes four active directors, with a recent addition of an experienced consultant, suggesting a degree of management stability.

4. Due Diligence Notes:

   • Verify the nature of current assets (cash, receivables, or other) to assess liquidity quality.
   • Obtain information on the company’s revenue streams and business model given the absence of employees and limited SIC classification (“Other service activities not elsewhere classified”).
   • Review related party transactions and governance policies due to concentrated ownership and familial control.
   • Confirm the company’s plans for growth, capital raising, or operational expansion to understand sustainability beyond micro-entity scale.
   • Check for any off-balance sheet liabilities or contingent risks not disclosed in limited financial statements.