KCBL TRADING LTD

Executive Summary

KCBL TRADING LTD presents a high-risk profile characterized by worsening net liabilities and a significant working capital deficit, raising serious solvency and liquidity concerns. Despite compliance with filing requirements and stable employee numbers, the financial deterioration and management turnover warrant thorough due diligence before any investment consideration.

KCBL TRADING LTD - Analysis Report

Company Number: 14356656

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

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, evidenced by persistent and increasing net liabilities and negative working capital. The financial position deteriorated substantially between 2023 and 2024, indicating a high risk of inability to meet obligations.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: Net liabilities increased from approximately £11,784 in 2023 to £37,845 in 2024, showing severe erosion of capital.
• Negative Net Current Assets (Working Capital Deficit): The deficit worsened from £6,784 to £36,092 within one year, indicating insufficient short-term assets to cover liabilities.
• Director Turnover and Address Changes: Multiple director resignations and reappointments within a short period could indicate instability in management or governance issues.

3. Positive Indicators:

• Current Filing and Compliance Status: No overdue filings for accounts or confirmation statements, indicating adherence to statutory requirements.
• Micro-Entity Filing Status: Benefit from simplified reporting and exemption from audit, reducing administrative burden.
• Consistent Employee Base: Maintained an average workforce of 6 employees over the reported periods, suggesting some operational continuity.

4. Due Diligence Notes:

• Investigate Causes of Increasing Liabilities: Detailed review of creditor composition and reasons for increasing short-term and long-term liabilities.
• Examine Cash Flow and Profitability: Absence of profit and loss data limits assessment; obtain internal management accounts or P&L statements.
• Assess Director Changes Impact: Clarify reasons behind director resignations and reappointments, including any related party transactions or governance concerns.
• Review Group Structure and Control: KCBL Ltd holds full control; understanding the parent’s financial health and strategy is essential.
• Operational Viability: Confirm ongoing contracts or revenue streams given the financial deterioration and industry classification (Electrical Installation and Other Services).