KEMPE LTD

Executive Summary

KEMPE LTD is financially robust with excellent liquidity and equity levels, showing no signs of financial distress. The company’s strong working capital and increasing net assets indicate sustained financial health typical of a well-managed micro-entity consultancy. Continued careful financial management and enhanced profit reporting are recommended for ongoing wellness and growth readiness.

KEMPE LTD - Analysis Report

Company Number: 12675244

Analysis Date: 2025-07-29 18:45 UTC

Financial Health Assessment of KEMPE LTD as of 30 June 2024

---

1. Financial Health Score: A-

KEMPE LTD demonstrates very strong financial health indicators, marked by excellent liquidity, solid equity, and steady growth in net assets. The company’s balance sheet shows robust working capital and a healthy buffer of shareholder funds relative to liabilities. The slight deduction from a perfect A is due to reliance on micro-entity accounting standards, which provide less detailed profit and loss insight, limiting a full diagnosis.

---

2. Key Vital Signs

Metric	Value (2024)	Interpretation
Fixed Assets	£2,636	Very low fixed asset base consistent with micro entity status, typical for a small consultancy.
Current Assets	£340,943	Strong short-term asset position, indicating healthy liquidity and cash availability.
Current Liabilities	£50,248	Low current liabilities relative to assets, suggesting good short-term solvency.
Net Current Assets	£290,829	Very healthy working capital, indicating the company can comfortably cover short-term debts.
Shareholders’ Funds (Equity)	£293,465	High equity base relative to liabilities, a sign of financial stability and retained earnings.
Employee Count	1	Micro-sized operation, low overhead costs.
Account Category	Micro	Simplified reporting but still showing consistent financial growth.

Interpretation:
The company’s "vital signs" reveal a "healthy cash flow" environment with strong liquidity and equity cushions. The net current assets significantly exceed current liabilities, a key symptom of good financial health, indicating no immediate distress.

---

3. Diagnosis

KEMPE LTD is in a strong financial position for a micro-entity consultancy-type business. The incremental increase in shareholders’ funds from £246,830 in 2023 to £293,465 in 2024 reflects retained profitability or capital injections, even though detailed profit and loss data are not disclosed. The low fixed asset base is typical and not a concern given the service-oriented nature of the business.

The company shows no "symptoms of distress" such as negative working capital or reliance on short-term debt. The current liabilities have decreased significantly from £88,654 to £50,248, which is a positive sign of improved payable management or debt reduction. The balance sheet is well-capitalised, and the director appears to maintain robust control.

---

4. Recommendations

• Maintain Strong Liquidity: Continue monitoring working capital closely to preserve the healthy cash position, ensuring the company can absorb any unexpected expenses.
• Profit & Loss Transparency: Consider voluntarily preparing a full P&L account or profit summary to provide better insight into operational performance, which will aid in future financial planning and stakeholder confidence.
• Growth Strategy: With a strong financial footing, explore measured opportunities for expansion or investing in fixed assets to support growth, if aligned with business strategy.
• Financial Planning: Since the company is a micro-entity with simple accounts, maintain rigorous internal financial controls and budgeting to avoid surprises.
• Compliance Vigilance: Ensure timely filing of accounts and confirmation statements to avoid penalties, which the company has managed well so far.

---