KBM SOLUTIONS LIMITED

Executive Summary

KBM Solutions Limited exhibits early signs of financial stress with a significant reduction in liquidity and net assets over the past year. While currently maintaining positive net current assets, the sharp decline in cash and debtors warrants cautious credit approval with conditions for ongoing monitoring. Further financial information and cash flow validation are recommended to confirm repayment capacity.

KBM SOLUTIONS LIMITED - Analysis Report

Company Number: 14249658

Analysis Date: 2025-07-29 18:46 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   KBM Solutions Limited is a young private limited company incorporated in 2022, operating in equipment repair (SIC 33190). The company shows a significant decline in net current assets and net assets from £32.6k in FY 2023 to £4.2k in FY 2024, indicating a contraction in balance sheet strength. The drastic decrease in debtors and cash balances on hand in FY 2024 compared to FY 2023 suggests potential collection or revenue issues. While current liabilities have reduced, the overall liquidity position is weaker. Given these signs of financial stress in the first two years of operation, credit approval should be conditional on further monitoring and possibly requiring updated management accounts or cash flow forecasts to confirm the company’s ability to meet repayments.

2. Financial Strength:

• Net Assets have declined from £32,629 in 2023 to £4,184 in 2024, primarily due to a reduction in current assets from £58,686 to £5,262.
• Fixed assets have increased slightly to £1,563, showing some investment in tangible equipment.
• Current liabilities have decreased from £26,259 to £2,344, which lessens short-term pressure but the significant drop in current assets weakens liquidity.
• Overall, the balance sheet shows erosion of working capital and equity which raises concerns about sustainable financial strength.

3. Cash Flow Assessment:

• Cash at bank dropped from £30,637 in 2023 to £4,564 in 2024, indicating a material cash outflow or lower cash generation.
• Debtors declined sharply from £28,049 to £698, which may reflect reduced sales or improved collections.
• Net current assets remain positive at £2,918 but are substantially lower than prior year, indicating reduced liquidity buffers.
• The company relies on a single director with significant control and limited staff, which may constrain operational resilience and cash flow management.

4. Monitoring Points:

• Regular review of updated management accounts and cash flow forecasts to assess ongoing liquidity and debt servicing ability.
• Watch for any further deterioration in net current assets or cash balances.
• Monitor trade debtor collections and any delayed payments to suppliers.
• Assess impact of market conditions on the equipment repair sector and company’s client base.
• Review director conduct and any changes in ownership or control that could affect governance or financial discipline.