Company Number: 13148413

Analysis Date: 2025-07-20 17:55 UTC

Financial Health Assessment for KESTEVEN HOUSING LIMITED

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1. Financial Health Score: B

Explanation:
KESTEVEN HOUSING LIMITED exhibits solid financial footing with consistently positive net assets and shareholders' funds, indicating a stable equity base. The company demonstrates healthy working capital and an asset growth trajectory over the past four years. However, as a micro-entity with limited financial disclosures and no audit, some caution is warranted in the full reliability of the financial picture. Overall, the company appears financially sound but with room for improvement in liquidity management.

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2. Key Vital Signs (Core Financial Metrics):

Metric	2024 (£)	Interpretation
Fixed Assets	132,848	Increased significantly (+44% vs prior year). Reflects asset growth, likely property investments consistent with SIC code 68100.
Current Assets	11,156	Decreased from prior year, indicating less liquid assets available short-term.
Current Liabilities	4,362	Slight increase, but manageable given asset base.
Net Current Assets	6,794	Positive working capital, but reduced from £12,500 last year, signaling tighter short-term liquidity.
Total Assets Less Current Liabilities	139,642	Strong net asset position, showing solid balance sheet strength.
Net Assets / Shareholders’ Funds	139,512	Equity backing continues to grow, reflecting retained earnings or capital injections.
Share Capital	30	Minimal share capital, typical for micro-entities.

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3. Diagnosis (What the Numbers Reveal):

• Healthy Asset Growth: The company’s fixed assets have increased notably, consistent with its business of buying and selling real estate. This “healthy asset buildup” is a positive sign, akin to a patient gaining muscle mass, strengthening the company’s core.

• Tightening Liquidity: The reduction in current assets and net current assets suggests “symptoms of tightening cash flow,” which could limit operational flexibility if not monitored. The company still maintains positive working capital, but the decline should be watched closely.

• Stable Equity Base: Net assets and shareholders’ funds have grown steadily since incorporation, indicating profitable operations or reinvestment. This “strong bone structure” supports long-term sustainability.

• Micro-Entity Status Limitations: Being a micro entity, the company benefits from simplified reporting but lacks detailed financial disclosures such as profit and loss data. This limits insight into operational profitability and cash flow quality.

• No Audit and No Employees: The absence of audit and no employees means the company is lean but also that financial oversight depends heavily on directors’ management, a factor to consider in risk assessment.

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4. Recommendations (Actions to Improve Financial Wellness):

• Improve Liquidity Management: Focus on increasing current assets or managing current liabilities to improve working capital. Consider maintaining a “healthy cash flow” buffer to avoid liquidity stress, especially given the cyclical nature of real estate.

• Regular Financial Reviews: Despite micro-entity exemptions, perform periodic internal reviews of profitability and cash flow to detect early “symptoms of distress.”

• Consider Formal Audit or Review: To enhance stakeholder confidence and improve financial “vital signs” transparency, consider voluntary audit or independent review in future years.

• Diversify Asset Portfolio: While current asset growth is positive, ensure the fixed asset portfolio is not overly concentrated to reduce risk exposure.

• Strengthen Governance: With two active directors and one recent resignation, maintain strong governance practices to ensure effective oversight and strategic decision-making.

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