KENIRIS ENGINEERING LTD

Executive Summary

Keniris Engineering Ltd is an active micro-entity operating in software development with current financials showing positive but declining net assets and heavy reliance on director funding. While regulatory compliance is satisfactory, the company's small scale and dependence on director loans present moderate solvency and liquidity risks. Further due diligence on cash flow and operational stability is recommended before investment consideration.

KENIRIS ENGINEERING LTD - Analysis Report

Company Number: 13119991

Analysis Date: 2025-07-20 12:15 UTC

1. Risk Rating: MEDIUM
   The company shows modest net current assets and positive shareholder funds, indicating basic solvency; however, the reliance on director loans and declining net assets suggest potential liquidity and operational risks.

2. Key Concerns:

• Dependence on Director Loan: The current assets closely mirror a director loan balance (£26,999), implying limited external financing and possible cash flow vulnerability if the director withdraws support.
• Declining Net Current Assets: Net current assets have decreased from £14,378 in 2021 to £7,395 in 2024, indicating a shrinking buffer to cover short-term liabilities.
• Single Employee and Limited Scale: With only one employee and micro-entity status, operational capacity and business diversification are minimal, raising sustainability concerns.

3. Positive Indicators:

• Up-to-Date Filings: Both accounts and confirmation statement filings are current with no overdue notices, reflecting good regulatory compliance.
• Positive Shareholders’ Funds: Despite reductions, shareholders’ funds remain positive, showing the company is not insolvent at the balance sheet date.
• No Auditor Requirement: As a micro-entity, exemption from audit reduces administrative burden and costs, appropriate for the company's scale.

4. Due Diligence Notes:

• Investigate the terms and sustainability of the director loan, including repayment plans and interest arrangements.
• Review cash flow statements (not provided) to assess liquidity beyond balance sheet snapshots.
• Examine customer base, contracts, and revenue streams to evaluate operational stability and growth prospects.
• Confirm absence of any director disqualification or legal issues affecting governance.
• Consider the impact of limited staffing on business continuity and scalability.