KG INVESTMENT GROUP LIMITED

Executive Summary

KG INVESTMENT GROUP LIMITED presents a moderate risk profile primarily due to its significant leverage and limited liquidity buffers, despite a stable fixed asset base and current compliance status. The company appears to be a property holding entity with minimal operations, which necessitates careful scrutiny of debt terms and cash flow adequacy. Investors should seek further clarity on liabilities and operational cash flows before forming a conclusive stability assessment.

KG INVESTMENT GROUP LIMITED - Analysis Report

Company Number: 13761276

Analysis Date: 2025-07-29 18:48 UTC

1. Risk Rating: MEDIUM
   KG INVESTMENT GROUP LIMITED shows a positive net asset position but with a very high level of long-term liabilities relative to equity and low current asset coverage. The company operates in real estate letting with fixed assets substantially exceeding current assets, which is typical but raises concerns about liquidity and debt servicing.

2. Key Concerns:

• High Leverage: Long-term creditors exceed £2.6 million, dwarfing shareholders’ funds (£65k), indicating heavy reliance on debt financing which may pressure solvency if cash flows falter.
• Liquidity Position: Current assets (£82.7k) provide limited buffer against short-term creditors (£20.6k), though net current assets are positive; this may be tight if operating cash inflows are inconsistent.
• Lack of Operational Data: No employees and minimal current assets suggest the company may be asset-holding or investment-focused rather than operational, limiting insight into cash flow generation or business sustainability.

3. Positive Indicators:

• Growing Equity: Shareholders’ funds increased from £12k in 2023 to £65k in 2024, indicating some capital injection or retained earnings accumulation.
• Timely Filings: Accounts and confirmation statements are up to date with no overdue filings, suggesting sound regulatory compliance.
• Asset Base Stability: Fixed assets remain stable at £2.62 million, consistent with property holdings typical for the SIC code in real estate letting.

4. Due Diligence Notes:

• Verify the nature and terms of the long-term liabilities (£2.6 million) to assess repayment schedules, interest burdens, and creditor covenants.
• Review cash flow statements or bank statements (not provided) to understand liquidity sufficiency and operational cash generation.
• Confirm the business model details given zero employees and minimal current assets—whether the company is purely a property holding entity or has other revenue streams.
• Assess any related party transactions, especially given control by two investment entities with significant voting rights and director appointment powers.
• Investigate director and management background for governance quality, given the small size and ownership concentration.