KIASHA ENTERPRISE LIMITED

Executive Summary

Kiasha Enterprise Limited shows strong liquidity and positive net assets as a young company, indicating a stable financial start. However, its limited operational history and small capital base suggest cautious optimism with recommendations to strengthen reserves and streamline operations for future growth.

KIASHA ENTERPRISE LIMITED - Analysis Report

Company Number: 15243876

Analysis Date: 2025-07-29 20:51 UTC

Financial Health Assessment Report for Kiasha Enterprise Limited

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1. Financial Health Score: B

Explanation:
Kiasha Enterprise Limited is a newly incorporated private limited company (incorporated October 2023) with its first accounts filed for the year ending October 2024. The financials show a positive net asset position and positive working capital, indicating a sound initial financial footing. However, limited operational history and modest asset base suggest some caution. Thus, a grade of B reflects a healthy but early-stage financial condition with room for growth and improvement.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	14,477	Healthy cash holding with no other current assets reported. Cash is the lifeblood ensuring liquidity.
Current Liabilities	9,820	Short-term obligations are moderate compared to cash reserves.
Net Current Assets	4,657	Positive working capital ("healthy cash flow cushion") indicating ability to cover short-term debts.
Net Assets (Shareholders’ Funds)	4,657	Positive equity base showing assets exceed liabilities—a sign of financial stability.
Called-up Share Capital	100	Very small capital base, typical for micro/small start-up firms.
Employees (Average)	1	Small operational scale, typical of a micro-business.
Company Age	~1 year	Early stage; limited financial history to assess trends.

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3. Diagnosis: Financial Condition and Underlying Health

Kiasha Enterprise Limited shows the classic "vital signs" of a start-up company with:

• Healthy liquidity: Cash balance exceeds current liabilities, indicating sufficient immediate funds to meet obligations without distress.
• Positive net assets: Indicates the company is solvent at the balance sheet date, with no excessive liabilities dragging the equity down.
• Modest scale: Only one employee and minimal capital invested, consistent with a micro or small company in early development.
• Industry diversity: Engaged in retail sale via mail order/internet (SIC 47910) and some construction-related activities (SIC 43999, 43120), suggesting potential for multiple revenue streams but also operational complexity.
• No audit requirement: Accounts prepared under small companies regime, implying a low complexity and scale.

Symptoms of caution:

• Limited operational history means financial performance trends, profitability, and cash flow sustainability are not yet established.
• The relatively small net asset base means that financial shocks or unexpected expenses could impact stability.
• No fixed assets recorded yet—business might be relying heavily on cash or intangible investments not capitalized.

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4. Recommendations: Actions to Enhance Financial Wellness

• Build Capital Reserves: Consider increasing share capital or retained earnings through reinvestment to strengthen the equity base and provide a buffer for future growth or downturns.
• Monitor and Manage Cash Flow: Maintain healthy liquidity by closely tracking receivables and payables, especially given the retail and construction activities that may involve delayed payments or upfront costs.
• Develop Fixed Assets or Inventory: As the business grows, investing in tangible or intangible assets could improve operational capacity and long-term value.
• Operational Focus: Clarify and streamline core business activities to avoid spreading resources too thin across diverse SIC codes (retail and construction). This will aid in stronger revenue generation and margin improvement.
• Prepare for Growth: As the company moves beyond its initial year, consider implementing more detailed financial controls, budgeting, and forecasting to anticipate challenges and opportunities.
• Compliance and Reporting: Continue timely filing of accounts and confirmation statements to maintain regulatory compliance and creditor confidence.

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Executive Summary

Kiasha Enterprise Limited exhibits healthy initial financial "vital signs" with positive net assets and good liquidity for a start-up company. While the early financial snapshot is stable, the business is in its infancy, so careful cash flow management and capital strengthening will be key to sustaining growth and avoiding future distress. Strategic focus on core activities and building operational capacity is recommended to improve its financial prognosis.