KFF HOLDINGS LTD

Executive Summary

KFF Holdings Ltd currently faces high financial risk due to significant negative net assets and a working capital deficit driven by large directors’ loans. While the company maintains investment property assets and regulatory compliance, its operational sustainability is uncertain without further capital support or improved profitability. Further investigation into related party balances and cash flow is recommended to better understand its financial resilience.

KFF HOLDINGS LTD - Analysis Report

Company Number: 13917026

Analysis Date: 2025-07-29 20:17 UTC

1. Risk Rating: HIGH
   KFF Holdings Ltd exhibits significant solvency and liquidity concerns, with negative net assets and large current liabilities primarily due to directors' loans. The company’s financial position shows deterioration over the past two years, indicating elevated financial risk.

2. Key Concerns:

• Negative Net Assets: The company’s net assets have declined from -£408 in 2023 to -£25,441 in 2024, signaling erosion of shareholder equity and potential insolvency risk.
• Excessive Current Liabilities: Current liabilities exceed current assets by £367,941 (2024), largely due to directors’ current accounts at £379,602, which may represent informal funding rather than stable financing.
• Operating Sustainability: The absence of a profit and loss account and reliance on investment property with volatile valuations, combined with sustained losses reflected in retained earnings, raise questions about ongoing operational viability.

3. Positive Indicators:

• Investment Property Asset: The company holds investment property valued at £342,500, which increased from £255,000 the previous year, showing asset growth and potential for future income or capital gains.
• Timely Filings: The company is compliant with filing deadlines with no overdue accounts or confirmation statements, reflecting regulatory adherence.
• Experienced Directors: Both directors have control and significant shareholding, potentially supporting aligned management interests and oversight.

4. Due Diligence Notes:

• Directors’ Loans and Related Party Transactions: Investigate the nature and terms of the £379,602 directors’ current accounts and the £11,331 owed to a related party (Prima Property Services Ltd) to assess financial stability and potential contingent liabilities.
• Cash Flow and Profitability: Obtain detailed management accounts or cash flow statements to evaluate the company’s ability to service liabilities and sustain operations without additional funding.
• Valuation of Investment Property: Review the methodology and assumptions used for property revaluation to verify asset values and assess potential impairment risks.
• Future Funding Plans: Clarify the company’s strategy for addressing negative net assets and working capital deficits, including any forthcoming capital injections or refinancing arrangements.