KENS CREATIVE TECH LTD

Credit Opinion: CONDITIONAL

The company is active, not in insolvency proceedings, and its statutory filings are not overdue. Net assets have increased steadily over the five-year period shown, and the balance sheet carries positive working capital with modest creditors. However, the accounts are unaudited and abridged, and no profit and loss account has been filed with the registrar, so the company’s ability to service debt from earnings cannot be verified from public filings. The balance sheet is small (total assets £47,489), which limits the scale of any facility and the available collateral. A modest credit facility could be considered, conditional on receipt of recent management accounts including a profit and loss account, appropriate security or guarantees, and a facility size calibrated to cash reserves and net assets.

Financial Strength

• Net assets have grown consistently from £13,970 (year ending 2021) to £30,252 (year ending 2025), with shareholders’ funds equal to net assets in each year.
• The asset base is light: tangible fixed assets are £1,128 (computer equipment), with no material property, plant, or equipment that could serve as security.
• Total liabilities are small (£17,237) and all fall due within one year; there are no long-term borrowings disclosed.
• Total assets of £47,489 indicate a very small balance sheet with limited capacity to absorb losses or support significant leverage.
• The accounts state that the directors believe the company is experiencing good sales growth and profitability and is a going concern; this is the company’s own assertion and cannot be verified from the filed abridged accounts.

Cash Flow Assessment

• Cash at bank improved from £4,805 (2024) to £11,596 (2025), though it remains below the £22,301 reported in 2022.
• Debtors decreased from £46,180 to £34,765, suggesting some cash collection, but the debtor balance remains large relative to total assets and represents a collection risk.
• Creditors falling due within one year fell from £26,349 to £17,237, indicating a reduction in short-term obligations.
• Net current assets are positive at £29,124, giving a current ratio of approximately 2.7:1.
• No cash flow statement is filed under the small companies regime, so liquidity trends must be inferred from balance sheet movements rather than direct cash flow data.

Monitoring Points

• Obtain recent management accounts, including a profit and loss account, to verify trading performance and debt service capacity.
• Monitor debtor ageing, concentration, and collection rates given the size of the debtor balance relative to the balance sheet.
• Track cash balances against any proposed facility size; headroom is limited given the small cash reserve.
• Clarify the persons with significant control register, which contains overlapping entries and potentially inconsistent ownership percentage bands.
• Confirm continued timely filing of accounts and confirmation statements following the company’s name change from ITA-NET (UK) LIMITED in October 2025.
• Watch for any change in trading activity or address that could indicate operational disruption.