KENTMERE HR SOLUTIONS LTD

Executive Summary

Kentmere HR Solutions Ltd is a small, micro-entity exhibiting solid liquidity and equity growth with no regulatory compliance issues. However, the company’s limited scale and single-person governance structure present operational and continuity risks. Further due diligence is recommended to understand the sustainability of financial improvements and underlying business activities.

KENTMERE HR SOLUTIONS LTD - Analysis Report

Company Number: 13815840

Analysis Date: 2025-07-29 15:06 UTC

1. Risk Rating: LOW

Justification: Kentmere HR Solutions Ltd demonstrates positive net asset growth and a healthy net current asset position as of the latest accounts. The company remains active with no overdue filings, and the sole director holds significant ownership, suggesting stable control.

2. Key Concerns:

• Limited Scale and Resources: The company is classified as a micro-entity with minimal fixed assets and only one employee (the director), which may constrain operational capacity and scalability.
• Concentration Risk: Ownership and directorship rest solely with one individual, which could pose continuity and governance risks should that person become unavailable or incapacitated.
• Lack of Audited Financials: The financial statements are unaudited and prepared under micro-entity exemptions, limiting the depth of assurance and potentially masking financial irregularities.

3. Positive Indicators:

• Strong Liquidity Position: The net current assets increased significantly from £4,743 in 2023 to £29,712 in 2024, indicating improved short-term liquidity and ability to meet obligations.
• Increasing Net Assets: Shareholders’ funds grew from £5,273 to £30,155 within the year, reflecting capital injection or accumulated profits that strengthen solvency.
• Compliance: All statutory filings including accounts and confirmation statements are up to date with no overdue status, indicating good regulatory compliance and governance discipline.
• Clear Ownership and Management: The sole director and controlling shareholder is identified with no records of disqualification or regulatory issues.

4. Due Diligence Notes:

• Investigate the source of the increase in net current assets and net equity to understand if this is from operating profits, capital contributions, or other financing.
• Review cash flow statements or bank statements (if available) to confirm liquidity beyond balance sheet metrics.
• Examine contracts or client base to assess operational sustainability given the small scale and single employee structure.
• Confirm absence of contingent liabilities or off-balance sheet obligations not reflected in the micro-entity accounts.
• Verify the director’s background and any potential conflicts of interest or related party transactions given the concentrated ownership.