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).