KEZI & CLAY HEALTHCARE LTD

Executive Summary

Kezi & Clay Healthcare Ltd currently faces high liquidity and solvency risks as current liabilities significantly exceed current assets, indicating potential difficulty in meeting short-term obligations. The company has invested heavily in fixed assets and increased shareholders' funds, suggesting some capital support; however, limited operational and profitability data constrain assessment of business sustainability. Comprehensive due diligence focusing on cash flows, debtor quality, and financing terms is recommended to clarify the company's financial health and operational viability.

KEZI & CLAY HEALTHCARE LTD - Analysis Report

Company Number: 13576166

Analysis Date: 2025-07-29 20:24 UTC

1. Risk Rating: HIGH
   The company demonstrates significant liquidity and solvency concerns evidenced by a substantial net current liabilities position and increased creditor balances relative to current assets, despite modest net asset growth.

2. Key Concerns:

• Liquidity Shortfall: As at 31 January 2024, current liabilities (£139,980) significantly exceed current assets (£66,665), resulting in a net current liability of £73,315. This indicates potential challenges in meeting short-term obligations.
• Rising Creditors and Director Loans: Current year trade creditors, tax liabilities, and director loans have increased markedly from prior year, suggesting reliance on external and related-party financing to support operations.
• Operating Scale and Stability: Only four employees on average, with no prior-year employees, and no turnover or profit & loss data available limits visibility on sustainable operational cash flows.

3. Positive Indicators:

• Growth in Net Assets: Shareholders' funds increased from £28,232 in 2023 to £50,463 in 2024, reflecting some retained earnings or capital injections.
• Tangible Fixed Asset Expansion: Significant additions (£106,359) to fixed assets including land, buildings, and equipment may indicate investment in operational capacity.
• No Overdue Filings: Accounts and confirmation statements are filed on time, showing compliance with statutory requirements.

4. Due Diligence Notes:

• Profit and Loss Account: Request detailed P&L statements and cash flow data to assess operational profitability and cash generation.
• Director Loans Terms: Clarify the terms, repayment schedules, and security of director loans totaling £38,825.
• Debtors Quality and Collection: Investigate the nature and collectability of £17,153 in debtors and accrued income.
• Business Model and Contracts: Review client base, contract terms, and revenue streams to evaluate ongoing business viability and growth prospects.
• Employee and Operational Details: Understand staffing levels, payroll commitments, and operational dependencies given the small employee base.

Executive Summary:
Kezi & Clay Healthcare Ltd exhibits high short-term financial risk due to a substantial net current liabilities position and increasing reliance on creditor and director financing. While net assets and fixed asset investments have grown, limited operational data and liquidity shortfalls raise concerns about cash flow sustainability. Further analysis of profitability, debtor quality, and financing arrangements is essential before investment consideration.