Company Number: 14370865

Analysis Date: 2025-07-20 17:35 UTC

1. Credit Opinion: DECLINE. KGSTUDIO LTD is a newly incorporated micro-entity with minimal financial history and currently shows negative net assets of £980 and net current liabilities of the same amount at the latest year-end. The company has only nominal current assets (£98) and liabilities exceeding this (£1,078), indicating an inability to meet short-term obligations from existing assets. The balance sheet deterioration from a positive net asset position of £1 in the prior years to a negative position suggests financial stress or undercapitalisation. Without evidence of positive cash flow or external funding, the company currently lacks capacity to service debt or sustain credit risk exposure.

2. Financial Strength: The balance sheet is weak with net liabilities of £980 at 30 September 2024. The company holds virtually no fixed assets and extremely limited current assets, mostly negligible cash or receivables. Current liabilities exceed current assets by a factor of more than 10, reflecting poor liquidity and working capital management. Shareholder funds have turned negative, signifying accumulated losses or capital withdrawals exceeding contributed capital. The company remains a micro entity with limited scale, minimal financial buffer, and no tangible asset base to support credit facilities.

3. Cash Flow Assessment: Cash flow appears severely constrained given the nominal cash and debtor balances reported. The absence of cash or receivables to cover short-term liabilities raises concerns about the company's ability to meet immediate creditor demands or operating expenses. The average number of employees is low (2), suggesting limited operational scale, but insufficient to offset the poor working capital position. Forecasts or management commentary on improved cash flow or capital injections were not provided, increasing repayment risk.

4. Monitoring Points:

• Monitor subsequent filings for improved liquidity, asset acquisition, or capital injections.
• Review any changes in current liabilities, particularly short-term borrowings or supplier payables.
• Track revenue growth and profitability indicators to assess financial trajectory.
• Assess director and shareholder support, including personal guarantees or capital contributions.