KBX PROPERTIES LIMITED

Executive Summary

KBX Properties Limited shows significant financial weaknesses with negative net assets and large working capital deficits, raising serious concerns about its ability to meet debt obligations. The company’s liquidity position is tight, with current liabilities far exceeding current assets and limited cash reserves. Credit extension is not recommended without substantial improvements in financial stability and independent asset verification.

KBX PROPERTIES LIMITED - Analysis Report

Company Number: 13758354

Analysis Date: 2025-07-29 20:34 UTC

1. Credit Opinion: DECLINE
   KBX Properties Limited exhibits significant financial distress despite being active and recently incorporated in 2021. The company’s net liabilities have increased, with shareholders' funds deeply negative at £-16,192 as of April 2024. The large net current liabilities (£-521,573) far exceed current assets, indicating poor short-term liquidity and an inability to meet current obligations without additional financing or asset disposals. The absence of external audit and reliance on unaudited financial statements adds risk to the reliability of reported figures. Given these factors, the company’s capacity to service new or existing debt is questionable, and credit approval is not recommended without substantial mitigation or restructuring plans.

2. Financial Strength:
   The company holds fixed assets valued at £505,382, composed mainly of investment properties (£438,484) and tangible assets (£66,898). However, these assets are offset by current liabilities of £582,239, resulting in a negative net working capital of £-521,573. The deteriorating net asset position from a £-1,736 deficit in 2022 to £-16,191 in 2024 signals worsening financial health. The investment property valuation is internally generated without an independent external valuation, which could overstate asset values. The minimal equity base (only £1 share capital) and accumulated losses further weaken financial resilience.

3. Cash Flow Assessment:
   Cash balances are low at £15,257, insufficient to cover near-term liabilities of £582,239. Debtors consist mainly of prepayments (£45,409), which are not readily convertible to cash, limiting liquidity. The company’s working capital deficit indicates ongoing cash flow strain, risking default on supplier and creditor payments. The minimal borrowing (£114) suggests limited external financing but also means the company may lack access to significant credit lines. Without clear evidence of positive operating cash flow or access to capital injections, liquidity risk remains high.

4. Monitoring Points:

• Regular review of cash flow statements and liquidity ratios to detect worsening short-term financial stress.
• Verification of investment property fair values through independent professional valuations.
• Monitoring of creditor balances and payment patterns to identify any defaults or delayed payments.
• Scrutiny of management plans for addressing the significant net current liabilities and negative equity position.
• Assessment of any director or related party transactions given control concentration (single director and 75-100% shareholder).