KELDAZ LTD

Executive Summary

Keldaz Ltd is a financially stable management consultancy with strong net assets and low liabilities, supporting its ability to service debt. However, declines in cash reserves and equity highlight the need for close monitoring of liquidity and related party exposures. Conditional credit approval is recommended, with focus on cash flow management and debtor collections.

KELDAZ LTD - Analysis Report

Company Number: 13971116

Analysis Date: 2025-07-29 19:36 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Keldaz Ltd demonstrates a strong net asset position and substantial liquidity, indicating sound financial footing to meet short-term obligations and service credit facilities. However, the company is relatively young (incorporated 2022) and shows a decline in net current assets and shareholder funds from £361k in 2023 to £260k in 2024, signaling some financial contraction. The director-related loans and intercompany lending, while common in SMEs, introduce related party risk that should be monitored. Approval is recommended subject to periodic review of cash flow performance and related party exposures.

2. Financial Strength:

• Net assets stand at £260k with minimal fixed assets (£384) reflecting a service-based management consultancy business.
• Shareholders’ funds decreased by approximately 28% year-on-year, from £361k to £260k, indicating retained earnings have declined or dividends have been paid out.
• Current liabilities are very low (£2.2k), supporting a strong working capital position.
• The company holds a modest investment in an associate (24% stake) valued at £137, which may provide future upside.
• The capital structure is simple with issued share capital of £100.

3. Cash Flow Assessment:

• Cash balances dropped from £285k to £142k in the latest year, a significant reduction that warrants attention.
• Debtors increased from £81k to £120k, which could pressure liquidity if collection terms are extended or uncollected.
• Net current assets remain solid at £260k, indicating good short-term liquidity.
• There is a director’s loan balance of £62k outstanding, which could impact cash availability depending on repayment terms.
• The company’s cash flow is likely dependent on timely debtor collections and prudent management of director and intercompany loans.

4. Monitoring Points:

• Track debtor aging and collection efficiency to ensure no liquidity strain develops.
• Monitor cash balances closely, especially given the sharp decline in cash year-on-year.
• Review related party transactions including director’s loans and loans to related company Dicebox Properties Limited for credit risk and repayment schedules.
• Watch profitability trends and dividend payments to ensure equity erosion does not continue.
• Evaluate impact of any changes in management consultancy market conditions on revenue and cash flow.