KCG SURVEYS LTD

Executive Summary

KCG SURVEYS LTD is currently facing financial challenges with negative working capital and shareholders’ funds indicating liquidity strain and accumulated losses. Immediate measures to improve cash flow, reduce costs, and strengthen capital are essential to restore financial health and ensure continued operation.

KCG SURVEYS LTD - Analysis Report

Company Number: 13201035

Analysis Date: 2025-07-29 16:38 UTC

Financial Health Assessment Report for KCG SURVEYS LTD

---

1. Financial Health Score: D

Explanation:
KCG SURVEYS LTD shows clear signs of financial distress primarily due to a negative net current assets position and negative shareholders’ funds in the latest financial year, which indicates liquidity issues and a weakened equity base. While the company remains active and operational, the downward trend in liquidity and net assets signals caution. The company’s very low share capital and small scale (Micro entity) further constrain financial resilience.

---

2. Key Vital Signs

Metric	2024 Actual (£)	Interpretation
Fixed Assets	3,430	Small asset base, consistent with a micro-entity.
Current Assets	736	Very low short-term assets, indicating limited liquid resources.
Current Liabilities	8,254	High short-term obligations, significant compared to current assets.
Net Current Assets (Working Capital)	-7,518	Negative working capital—a critical symptom of cash flow distress.
Total Assets Less Current Liabilities	-4,088	Negative, showing overall asset base is insufficient to cover short-term debts.
Net Assets / Shareholders’ Funds	-4,088	Negative equity, indicating losses have eroded capital.
Average Employees	2	Very small workforce, typical for micro-entity.
Share Capital	3.00	Nominal capital, minimal buffer for absorbing losses.

Interpretation of Vital Signs:

• Negative Working Capital: The company has more short-term liabilities than current assets, signaling potential problems meeting short-term obligations—a classic symptom of financial strain.
• Declining Fixed Assets and Current Assets: Both have decreased compared to previous years, suggesting either asset disposals or lack of reinvestment.
• Negative Net Assets: Indicates accumulated losses have wiped out equity; this is a serious red flag for financial health.
• Small Scale: Being a micro company limits access to finance and the ability to absorb shocks.

---

3. Diagnosis

KCG SURVEYS LTD is currently exhibiting symptoms of financial distress characterized by a strained liquidity position and negative equity. The company's negative net current assets signify it may struggle to cover its immediate debts, which could lead to difficulties in maintaining operations if not addressed promptly. The negative net assets imply that the company has accumulated losses exceeding its capital base, eroding shareholder value.

The small size and minimal share capital further limit the company's financial flexibility. Although the company remains active and has no overdue filings, the financial data suggest it is operating under tight cash flow constraints, akin to a patient showing signs of fatigue and weakness due to underlying illness.

---

4. Recommendations

To improve the company's financial wellness and avoid the risk of insolvency, the following actions are advised:

1. Improve Liquidity:

   • Prioritize collection of receivables and reduce unnecessary inventory or current assets tied up in non-liquid forms.
   • Negotiate extended payment terms with creditors to ease short-term cash pressures.

2. Capital Injection:

   • Consider an equity injection from existing shareholders or new investors to shore up negative net assets and restore shareholder confidence.

3. Cost Management:

   • Review and reduce operational expenses rigorously to improve profitability and cash flow.

4. Financial Planning:

   • Develop a cash flow forecast to anticipate liquidity needs and avoid surprises.
   • Engage with a financial advisor or accountant to implement robust financial controls and reporting.

5. Explore Financing Options:

   • Investigate short-term financing solutions such as overdrafts or invoice financing to cover immediate cash gaps, but balance this with long-term sustainability.

6. Monitor Financial Health Regularly:

   • Track key financial indicators monthly to detect and address issues early.

By adopting these measures, KCG SURVEYS LTD can stabilize its financial condition, improve liquidity, and build a healthier equity position, thereby improving its long-term viability.

---