Company Number: 13455875

Analysis Date: 2025-07-20 19:14 UTC

1. Credit Opinion: DECLINE
   KDKH Leisure Ltd demonstrates a weak financial position with persistent and increasing net liabilities over the last three years, culminating in net current liabilities of £7,400 as of June 2024. There is no evidence of positive cash or current assets to support working capital needs, indicating a lack of liquidity and inability to meet short-term obligations without additional funding. The company is relatively new (incorporated in 2021) but has deteriorated from positive net current assets of £3,634 in its first year to negative £7,400. This negative trend and lack of asset backing suggest it is not currently creditworthy for new lending or extended credit facilities.

2. Financial Strength:
   The balance sheet is weak and deteriorating. Net assets have declined from positive £3,634 at incorporation to negative £7,400 in the latest year. Current liabilities have increased, while current assets have fallen to zero, indicating no readily available liquid resources. Shareholders’ funds are negative, pointing to an erosion of equity capital. The company operates as a micro entity with approximately 5 employees and has no fixed assets reported, limiting collateral availability. This financial weakness undermines the company’s ability to absorb shocks or invest in growth.

3. Cash Flow Assessment:
   The company shows no current assets (cash or receivables) against current liabilities of £7,400, indicating poor liquidity and working capital deficiency. This negative net current asset position implies potential difficulties in settling short-term debts and operational expenses without external support or capital injections. The consistent increase in net current liabilities over three years signals cash flow stress. No audit or detailed cash flow statement is provided, but the balance sheet alone raises concerns about operational cash sufficiency.

4. Monitoring Points:

• Track any improvement in net current assets and reduction of liabilities on future accounts.
• Observe director and shareholder capital injections or external financing arrangements.
• Monitor the company’s ability to generate positive cash flow from operations, especially given its public house/bar industry exposure which can be volatile.
• Watch for timely filing of accounts and confirmation statements to assess ongoing compliance and operational status.
• Evaluate any changes in management or strategy aimed at financial recovery.