KHARRIS LIMITED

Executive Summary

KHARRIS LIMITED is a newly established management consultancy demonstrating initial financial stability with positive net assets and working capital. While the company currently shows adequate liquidity and no borrowings, its limited operating history and small scale pose higher credit risk. Conditional approval is recommended, subject to ongoing monitoring of financial performance and timely compliance with obligations.

KHARRIS LIMITED - Analysis Report

Company Number: 14237225

Analysis Date: 2025-07-29 20:18 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   KHARRIS LIMITED is a recently incorporated private limited company (since July 2022) engaged in management consultancy activities. The company’s financial statements for the first period ending July 2023 show a modest but positive net asset position (£33,934) and positive working capital (£31,285), indicating initial financial stability. However, given the company’s very early stage, limited operating history, and small scale (just one employee), the credit risk is higher than for established firms. Approval for credit facilities should be conditional on continued trading evidence, timely filing of accounts and returns, and monitoring of cash flow and profitability development.

2. Financial Strength:

• The balance sheet shows minimal fixed assets (£2,649) and current assets of £64,330, largely cash (£39,969) and trade debtors (£24,361).
• Current liabilities total £33,045, consisting mainly of corporation tax (£18,023) and other taxation/social security (£12,823), with a small amount of other creditors (£2,199).
• Positive net current assets (£31,285) and net assets (£33,934) reflect a solvent position.
• Shareholder funds comprise mostly profit and loss reserves (£33,834), indicating some retained earnings despite being a new company.
• The company has no debt or bank borrowings reported, which reduces financial risk but limits credit history.

3. Cash Flow Assessment:

• The company holds a reasonable cash balance relative to liabilities, covering current liabilities by approximately 1.9 times, indicating adequate short-term liquidity.
• Trade debtors amount to £24,361, which should be monitored for collection efficiency to prevent cash flow strain.
• Tax liabilities are material in proportion to assets and cash; timely payments need to be ensured to avoid enforcement actions.
• The single-employee structure suggests low fixed overheads, which supports cash conservation.
• Absence of historical cash flow trends limits full assessment; ongoing monitoring of cash generation from operations is advised.

4. Monitoring Points:

• Track subsequent annual accounts and management accounts for revenue growth, profitability, and working capital trends.
• Monitor timely settlement of tax liabilities and other creditors to avoid potential enforcement or penalties.
• Watch changes in trade debtor days and cash balances to detect emerging liquidity issues.
• Observe any changes in company structure, credit arrangements, or director appointments that may impact credit risk.
• Validate continued compliance with filing deadlines and regulatory obligations.