KAY’S MAN WITH A VAN LTD

Executive Summary

KAY’S MAN WITH A VAN LTD shows foundational financial stability typical of a startup micro-entity with positive net current assets and positive equity, but very limited scale and financial history. The company is solvent and compliant but faces typical early-stage risks of low liquidity and unproven revenue streams. Focused efforts on building cash reserves, accelerating revenue, and strengthening governance are essential to improve financial health and ensure long-term viability.

KAY’S MAN WITH A VAN LTD - Analysis Report

Company Number: 14764876

Analysis Date: 2025-07-29 17:14 UTC

Financial Health Assessment of KAY’S MAN WITH A VAN LTD

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1. Financial Health Score: C

Explanation:
Given that KAY’S MAN WITH A VAN LTD is a newly incorporated micro-entity (less than 1 year old), the financial data is limited and reflects the early stage of business development. The company shows positive net current assets and shareholders’ funds, indicating initial financial stability, but the absolute size of these figures is very small. The absence of income, profit/loss, and cash flow data restricts a full diagnostic. Hence, a cautious "C" grade reflects a stable but nascent financial condition with significant room for growth and risk management.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	453	Minimal short-term resources; very low cash/debtors/stock
Current Liabilities	178	Low short-term obligations; manageable
Net Current Assets	275	Positive working capital (Current Assets - Current Liabilities) - a sign of liquidity but very small in magnitude
Net Assets / Shareholders’ Funds	275	Positive equity indicates no accumulated losses; company funded by owner’s capital
Number of Employees	1	Micro scale operation; likely owner-operated
Company Age	~1 year	Early stage; limited financial history

Additional Observations:

• No audit required due to micro-entity status, consistent with size and turnover expectations.
• Director and sole shareholder is the same person, indicating centralized control.
• Operating in two related SIC codes: real estate management and removal services, possibly diversifying income streams or combining services.

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3. Diagnosis: What the Financial Data Reveals

The company exhibits the "vital signs" of a startup or micro-business. The positive net current assets indicate that, at the balance sheet date, the company had slightly more short-term assets than liabilities—a "healthy cash flow" symptom at this scale. However, the absolute amounts (£453 current assets and £178 liabilities) are very modest, reflecting the limited scale of operations.

The net assets of £275 correspond to the shareholder’s funds, essentially the owner’s initial capital contribution. The absence of any reported revenue, profit, or loss data suggests that the company has not yet commenced full trading or is in the very early stages of generating income.

The company is solvent with no signs of financial distress such as negative net assets or overdue filings. The single employee aligns with the micro-entity classification and suggests a lean operational structure.

Potential underlying risks ("symptoms of distress" to monitor) include:

• Very low liquidity buffer—any unexpected expenses or delayed income could strain cash flow.
• Early stage means the business model and market fit may still be unproven.
• Reliance on a single director/shareholder may pose governance risks and limit access to additional capital or expertise.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Build Cash Reserves: Aim to increase current assets, particularly cash balances, to create a buffer against cash flow shocks. Consider short-term financing options if necessary.
• Revenue Generation and Profitability: Focus on accelerating sales and service contracts to generate sustainable income and move beyond the initial capital phase.
• Financial Record Keeping: Maintain diligent accounting and consider preparing management accounts monthly to monitor cash flow and expenses tightly.
• Risk Management: Develop contingency plans given the micro scale; consider business insurance and diversification strategies.
• Governance and Controls: Even as a micro business, establish some level of internal controls and consider advice or mentorship to strengthen decision-making.
• Growth Planning: Prepare forecasts and budgets to plan capital needs and growth strategies, aligning with the mixed industry activities (real estate management and removal services).
• Compliance: Continue timely filing of accounts and confirmation statements to maintain good standing with Companies House.

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