KCD RENOVATIONS LTD

Executive Summary

KCD Renovations Ltd shows a recovering financial position with improved net assets and positive cash balances as of August 2024, following prior liquidity challenges. While statutory compliance is current and operational scale is small, the company’s reliance on short-term liabilities and concentrated control indicate moderate risk requiring further review of cash flow and creditor arrangements. Overall, the company’s financial stability appears cautiously sustainable at present.

KCD RENOVATIONS LTD - Analysis Report

Company Number: 13561279

Analysis Date: 2025-07-29 15:33 UTC

1. Risk Rating: MEDIUM
   The company shows improving net assets and positive net current assets in the latest year; however, previous years reflected liquidity pressures with negative net current assets. The modest fixed asset base and reliance on current liabilities suggest possible short-term cash flow constraints. The absence of audit and limited employee base are typical for a small company but warrant monitoring.

2. Key Concerns:

• Liquidity volatility: The company shifted from negative net current assets (£-3,301 in 2023) to a modest positive (£6,058 in 2024), indicating fluctuating working capital management.
• High current liabilities relative to assets: Current liabilities remain substantial (£53,094 in 2024) and include loans and tax obligations that require timely servicing.
• Concentration risk: Single director/control by one individual (Mr. Kieran Dennehy) may pose operational and governance risks, especially in decision-making and succession.

3. Positive Indicators:

• Improved financial position: Net assets increased from £1,761 in 2023 to £9,854 in 2024, driven by better liquidity and retained earnings growth.
• Positive cash balance: Cash reserves increased to £56,129, providing some buffer against short-term obligations.
• Timely filings: No overdue accounts or confirmation statements; compliance with statutory requirements is up to date, reducing regulatory risk.

4. Due Diligence Notes:

• Review the nature and terms of current loans and creditor balances to assess repayment schedules and potential refinancing needs.
• Investigate cash flow patterns and contract backlogs to confirm sustainability of improved working capital.
• Assess director’s loan account movements and any related party transactions for potential conflicts or financial exposure.
• Understand business model and client concentration given the company operates in building finishing and domestic construction, sectors sensitive to economic cycles.