KEMPTOWN CURRY HOUSE LTD

Executive Summary

KEMPTOWN CURRY HOUSE LTD is currently in a fragile financial state marked by worsening liquidity and growing net liabilities, resembling a patient in critical condition. Immediate measures to improve cash flow, control costs, and restructure debts are essential to restore financial health and ensure operational continuity. Without intervention, the company faces significant risk of insolvency.

KEMPTOWN CURRY HOUSE LTD - Analysis Report

Company Number: 13643889

Analysis Date: 2025-07-20 17:16 UTC

Financial Health Assessment of KEMPTOWN CURRY HOUSE LTD

---

1. Financial Health Score: D

Explanation:
The company exhibits significant liquidity stress and deteriorating net asset position, indicating financial distress. The negative working capital and growing net liabilities reflect symptoms akin to a patient with chronic illness requiring urgent intervention. The lack of cash reserves relative to current obligations points to potential difficulties meeting short-term liabilities.

---

2. Key Vital Signs (Core Financial Metrics)

Metric	2024 (£)	2023 (£)	Interpretation
Current Assets	6,349	4,697	Slight improvement but still very low
Cash on Hand	1,399	947	Cash increased but remains critically low
Current Liabilities	44,913	15,639	Sharp increase, indicating rising short-term debt
Net Current Assets (Working Capital)	-38,564	-10,942	Negative and worsening, a major liquidity red flag
Net Assets	-38,155	-10,430	Increasing net liabilities, indicating erosion of equity
Shareholders’ Funds	-38,255	-10,530	Negative equity showing accumulated losses
Tangible Fixed Assets (Net Book Value)	409	512	Minimal fixed assets, negligible buffer
Average Employees	6	6	Stable staffing, no cost reduction visible

Interpretation of Vital Signs:

• Liquidity (Cash & Working Capital): The company’s working capital is deeply negative, showing symptoms of liquidity distress — it does not have enough short-term assets to cover immediate liabilities. Cash reserves are very low compared to liabilities due within a year, indicating a strained "cash flow pulse."
• Solvency (Net Assets & Equity): Net liabilities have increased dramatically over one year from about -£10k to -£38k, showing the company is operating at a substantial loss, eroding shareholder equity and indicating "chronic financial illness."
• Asset Base: Minimal tangible assets limit collateral or the ability to raise funds through asset sales.
• Operating Scale: Small and stable workforce, but no sign of scaling up or cost control improvements.

---

3. Diagnosis (What the Financial Data Reveals)

KEMPTOWN CURRY HOUSE LTD is exhibiting serious financial distress symptoms:

• Liquidity Crisis: The steep increase in current liabilities (£44,913) versus current assets (£6,349) suggests an inability to meet short-term obligations without additional financing or cash inflows.
• Negative Net Worth: The company has accumulated losses reducing shareholders’ equity to a negative £38,255, indicating insolvency on a balance sheet basis.
• Rising Creditors: The sharp rise in trade creditors and other short-term creditors indicates possible delayed payments to suppliers, which can strain supplier relationships and operational continuity.
• Low Asset Cushion: With only £409 in net fixed assets, the company has little to no asset backing to secure loans or cover liabilities.
• Operating Continuity Risk: Without intervention, the company risks a liquidity crunch that could lead to insolvency procedures such as administration or liquidation.
• Underlying Causes: While detailed profit and loss data is not disclosed, the large negative reserves and rising liabilities imply ongoing operational losses or cash flow mismanagement.

---

4. Recommendations (Actions to Improve Financial Wellness)

To restore financial health, KEMPTOWN CURRY HOUSE LTD should consider the following measures urgently:

• Improve Cash Flow Management:

  • Tighten control on cash inflows and accelerate debtor collections if applicable.
  • Negotiate extended payment terms with creditors to ease immediate cash outflows.
  • Consider short-term bridging finance or overdraft facilities to stabilize cash availability.

• Cost Control and Operational Review:

  • Review all operating expenses to identify cost-saving opportunities without compromising service quality.
  • Examine staffing levels and overhead to optimize for current trading conditions.

• Capital Injection or Restructuring:

  • Explore options for fresh equity investment or shareholder loans to improve capital structure.
  • Consider restructuring liabilities with creditors if repayment terms are unsustainable.

• Financial Monitoring and Reporting:

  • Implement rigorous monthly financial monitoring ("vital signs check-ups") to detect early warning signs.
  • Prepare cash flow forecasts and scenario planning to anticipate future liquidity needs.

• Strategic Review:

  • Evaluate business model viability under current market conditions.
  • Explore diversification or enhanced marketing to increase turnover and profitability.

• Professional Advice:

  • Engage with financial advisors or insolvency practitioners early to discuss turnaround strategies.

---

Summary

KEMPTOWN CURRY HOUSE LTD shows clear symptoms of financial distress, primarily due to poor liquidity and escalating liabilities resulting in negative equity. Without immediate intervention to improve cash flow and possibly restructure debts, the company faces a high risk of insolvency. Urgent action to stabilize finances and restore solvency is critical to avoid a potential "financial collapse."