Company Number: 14721714

Analysis Date: 2025-07-20 18:06 UTC

Financial Health Assessment for Kaya Ensor Films Limited

---

1. Financial Health Score: B

Explanation:
Kaya Ensor Films Limited shows a solid start-up phase with positive net assets, healthy working capital, and a strong cash position relative to liabilities. The company operates within the micro-entity regime, reflecting its small scale and early stage. While the business shows no immediate signs of financial distress ("symptoms of distress") and has good liquidity, the relatively short trading history and director loans indicate some reliance on internal funding. This score reflects a generally healthy financial condition with room for improvement in operational scale and reducing director loan dependency.

---

2. Key Vital Signs

Metric	31/03/2024 (£)	31/12/2024 (£)	Interpretation
Current Assets	36,502	69,955	Significant increase, indicating improved liquidity and asset base.
Cash & Cash Equivalents	13,799	50,126	Robust growth in cash reserves represents a "healthy cash flow" and good short-term financial flexibility.
Debtors (Trade Receivables)	22,703	19,829	Slight decrease, showing some improvement in collections or billing cycles.
Current Liabilities	10,005	33,016	Increase mainly due to VAT and tax liabilities plus director loan; requires monitoring.
Net Current Assets (Working Capital)	26,497	36,939	Positive working capital signals good short-term solvency and ability to meet obligations.
Net Assets (Equity)	26,758	37,178	Positive net assets indicate the company is solvent with retained earnings growing.
Director Loans	0	5,061	Introduction of director loans suggests reliance on internal funding, a "symptom" of limited external finance.

---

3. Diagnosis

The financial "vital signs" of Kaya Ensor Films Limited reveal a company in its infancy but maintaining a "healthy pulse." The increase in cash and net current assets is encouraging, suggesting the business is generating cash or managing its working capital effectively. The rise in current liabilities, particularly VAT and tax-related, is normal for a growing business but should be carefully managed to avoid liquidity pressure.

The presence of director loans indicates the company is supplementing operations with internal finance rather than external borrowing, common for start-ups but requiring close oversight to ensure these do not become a financial burden.

The company’s tangible fixed assets are minimal, appropriate for a service-oriented video production business. Overall, the company appears solvent and financially stable with positive equity, reflecting good financial health for a business less than 2 years old.

---

4. Recommendations

• Cash Flow Management: Maintain the current strong cash position but monitor VAT and tax liabilities closely to avoid cash flow "blockages" that can cause distress.

• Reduce Director Loan Reliance: Consider formalising finance arrangements with clear terms or explore external funding sources to reduce dependency on director loans which may affect cash flow and director personal risk.

• Debtor Management: Accelerate debtor collections to improve liquidity further and reduce working capital tied up in receivables.

• Profitability Focus: As the company grows, focus on improving profit margins and generating retained earnings to support sustainable growth and reduce the need for external financing.

• Compliance and Reporting: Ensure timely filing of accounts and confirmation statements to maintain good standing with Companies House and avoid penalties.

• Strategic Planning: Develop a business plan that outlines growth targets, investment needs, and financial forecasts to guide healthy scaling of operations.

---