KELVIN TS TRUSTEES LIMITED

Executive Summary

Kelvin TS Trustees Limited shows a strong asset base with positive net equity but faces liquidity constraints due to current liabilities exceeding current assets. The company’s financial disclosures are limited, and cash flow data is unavailable, which restricts full credit risk assessment. Conditional approval is recommended, contingent on providing evidence of adequate liquidity and debt servicing capability in the short term.

KELVIN TS TRUSTEES LIMITED - Analysis Report

Company Number: SC751191

Analysis Date: 2025-07-29 12:33 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Kelvin TS Trustees Limited is a small, micro-entity company with a strong asset base but a significant level of long-term liabilities. The company appears solvent with net assets of approximately £1.57 million, supported by substantial fixed assets (£3.34 million). However, the current liabilities exceed current assets resulting in negative working capital, which elevates short-term liquidity risk. The absence of turnover and profit & loss data limits assessment of operational cash flow and profitability. The company structure (limited by guarantee, no share capital) and its control by a single corporate entity (Kelvin Top-Set Limited) suggest limited financial flexibility but potentially stable ownership. Approve credit with conditions: require updated management accounts or cash flow forecasts demonstrating ability to service short-term obligations and meet debt commitments.

2. Financial Strength:
   The balance sheet shows a solid fixed asset base (£3.34 million) which supports the company's net asset value (£1.57 million). However, current liabilities of £360,973 far exceed current assets of £889, resulting in a net current liability position of (£360,084). This indicates potential short-term liquidity challenges. Long-term creditors amount to £1.414 million, which is manageable given net assets but represents a substantial gearing ratio. The company's micro-entity status and exemption from audit mean financial information is limited, but the positive net asset position indicates a solvent entity overall.

3. Cash Flow Assessment:
   Current assets are almost negligible compared to current liabilities, indicating tight liquidity and likely reliance on cash inflows or parent company support to meet near-term obligations. No employees are reported, suggesting minimal operating overhead, but also little revenue generation. The lack of a profit and loss account restricts assessment of operating cash flow. The company will need to demonstrate either strong cash inflows or external funding sources to maintain liquidity and service liabilities.

4. Monitoring Points:

• Short-term liquidity metrics: current ratio and quick ratio improvements
• Cash flow generation from operating activities or parent company support
• Changes in creditor balances and maturity profiles
• Any material changes in fixed asset valuations or impairments
• Timely filing of subsequent annual accounts and confirmation statements
• Impact of any new debt or capital injections on financial leverage