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.

---