KERSHAW HOMES LIMITED

Executive Summary

Kershaw Homes Limited shows clear signs of financial distress with negative net assets and no current operational activity, reflected in its dormant status. The company's financial health is weak, with liabilities exceeding assets and no working capital to cover short-term obligations. To improve its outlook, the company must secure new capital and develop a viable business strategy to transition back to active trading.

KERSHAW HOMES LIMITED - Analysis Report

Company Number: 12868757

Analysis Date: 2025-07-29 15:41 UTC

Financial Health Assessment: KERSHAW HOMES LIMITED

---

1. Financial Health Score: D

Explanation:
Kershaw Homes Limited currently demonstrates financial distress symptoms, reflected in consistent net liabilities and negative shareholders’ funds over recent years. The company’s dormant status and minimal financial activity limit traditional liquidity or profitability analysis, but the balance sheet shows an unhealthy capital structure akin to a patient with chronic illness: the company’s financial "vital signs" are weak, indicating risk of ongoing instability without intervention.

---

2. Key Vital Signs

Metric	2024 (£)	Interpretation
Current Assets	0	Complete absence of liquid or short-term assets suggests no working capital available.
Current Liabilities	260	Small but present obligations due within a year; liabilities exceed available assets.
Net Current Assets (Working Capital)	-260	Negative working capital indicates inability to meet short-term debts from current assets.
Total Assets Less Current Liabilities	-260	Indicates overall liabilities exceed assets, a sign of financial distress.
Net Assets / Shareholders’ Funds	-644	Negative equity implies accumulated losses or obligations surpassing investment capital.
Account Category	Dormant	Minimal or no business activity, limiting operational cash flows and revenue generation.
Average Employees	1	Very small operational scale, likely minimal revenue-producing activities.
Filing Status	Up to date	No overdue filings, indicating good compliance discipline despite financial difficulties.

Interpretation:

• The company is akin to a patient in a dormant or resting state but with underlying chronic conditions (negative equity and working capital).
• The balance sheet shows no reserves or cash flow cushions to cover immediate liabilities, which is a classic symptom of financial distress.
• The company’s dormant status means it has not been actively trading, which can explain the lack of assets and income but also means no recovery through operations is currently occurring.

---

3. Diagnosis

Underlying Condition:
Kershaw Homes Limited is in a financially precarious position characterized by persistent negative net assets and liabilities exceeding assets. Despite being a private limited company engaged nominally in real estate management and transactions, the company has not generated operational income or built asset base, as indicated by its dormant account filing.

This is comparable to a patient who is not currently active but suffers from malnutrition (negative equity) and dehydration (no liquid assets) — the company has no financial resources to sustain growth or cover debts without new capital or operational change.

The negative equity trend from £100 net assets at incorporation in 2020 declining to -£644 by 2024 signals accumulated losses or costs not offset by income or investment. The very small scale of operations (one employee) and dormant filing status suggest the company is not currently generating meaningful revenue streams.

---

4. Recommendations

To improve financial wellness, Kershaw Homes Limited should consider the following actions:

• Capital Injection: The company needs an infusion of funds from shareholders or external investors to restore positive net assets and provide liquidity for operations—akin to administering a vital nutrient to a weakened patient.

• Operational Activation: Transition from dormant status to active trading with clear, realistic business plans to generate revenue and rebuild asset base.

• Cost Management: Tighten control on liabilities and operating costs. Avoid incurring new debts without secured income streams.

• Regular Financial Monitoring: Implement monthly cash flow and balance sheet reviews to catch early signs of financial distress and adjust strategy accordingly.

• Seek Professional Advice: Engage financial advisors or insolvency practitioners if capital raising is not feasible, to explore restructuring or orderly winding down options before financial condition worsens.

---