KILMAR GROUP LONDON LIMITED

Executive Summary

KILMAR GROUP LONDON LIMITED is financially stable with a strong asset base and solid equity, but faces liquidity pressure due to rising short-term liabilities exceeding current assets. Addressing working capital and cash flow management is critical to prevent short-term financial distress. Overall, the company’s long-term financial health remains sound, supported by its significant real estate holdings.

KILMAR GROUP LONDON LIMITED - Analysis Report

Company Number: 13120896

Analysis Date: 2025-07-29 19:49 UTC

Financial Health Assessment: KILMAR GROUP LONDON LIMITED

---

1. Financial Health Score: B

Explanation:
KILMAR GROUP LONDON LIMITED displays strong asset backing and solid equity, indicative of a stable financial foundation. The company holds significant fixed assets relative to liabilities, with net assets consistently above £3.2 million over the last three years. However, there is a concerning trend of increasing current liabilities surpassing current assets, leading to a tight working capital position in the latest year. This "symptom of distress" in liquidity prevents a top grade but does not yet indicate critical financial illness.

---

2. Key Vital Signs

Metric	Latest (2024)	Prior Year (2023)	Interpretation
Fixed Assets	£5,452,494	£5,455,762	Stable, showing firm investment in long-term real estate assets.
Current Assets	£855,477	£821,839	Slightly improved cash and short-term asset base.
Current Liabilities	£2,215,916	£1,936,369	Significant rise in short-term obligations—a red flag for liquidity.
Net Current Assets (Working Capital)	£(1,360,439) (calculated as £855,477 - £2,215,916)	£(1,114,530)	Negative working capital; the company owes more in the short term than it holds in liquid assets.
Net Assets (Equity)	£3,296,818	£3,297,396	Strong net worth, indicating that long-term financial health remains intact.
Share Capital	£6.00	£6.00	Nominal share capital, typical for micro-entities, not a concern here.

Note: The accounts show a micro-entity exemption and no employees, suggesting a lean structure primarily focused on property holding.

---

3. Diagnosis

• Healthy Long-Term Backbone: The company’s fixed assets of over £5.4 million reflect ownership or lease of real estate, consistent with its SIC code (68209: Other letting and operating of own or leased real estate). These assets form a solid "skeleton" supporting the business.

• Liquidity Symptoms: The current liabilities more than double the current assets, creating a negative working capital situation. This is a "symptom of distress" in operational liquidity, meaning the company might face short-term cash flow challenges in meeting its immediate obligations unless it can convert fixed assets or secure credit facilities.

• Stable Equity Position: Despite liquidity concerns, shareholders’ funds remain stable at around £3.3 million, which is a "healthy heart" pumping financial strength. This equity cushion suggests the company is not over-leveraged long-term and has resilience.

• No Operational Employees: The company shows zero employees, likely indicating it operates as a holding or investment entity, with minimal operating expenses, reducing cash burn risks.

• No Audit Required: Micro-entity accounts and exemption from audit mean less detailed external scrutiny, but also less insight into operational profitability or cash flow trends.

---

4. Recommendations

To improve the financial wellness and mitigate liquidity risks, KILMAR GROUP LONDON LIMITED should consider:

• Improve Working Capital Management: Aim to reduce current liabilities or increase current assets (e.g., cash reserves). This could involve negotiating longer payment terms with creditors or accelerating receivables.

• Explore Short-Term Financing: Secure a revolving credit facility or short-term loan to buffer liquidity gaps, ensuring the company can cover immediate obligations without asset liquidation.

• Asset Utilization Review: Evaluate whether any fixed assets can be monetized or leveraged (e.g., sale and leaseback arrangements) to improve cash flow.

• Regular Cash Flow Monitoring: Implement disciplined cash flow forecasting to anticipate and address liquidity crunches before they arise.

• Maintain Equity Strength: Preserve the strong equity base by avoiding dividend payments or shareholder withdrawals until liquidity improves.

• Consider Future Growth or Diversification: Since the company is asset-heavy but employee-light, exploring new revenue streams or partnerships could optimize the asset base and generate operating cash flow.

---

Medical Analogy Summary

KILMAR GROUP LONDON LIMITED’s financial health resembles a patient with a strong skeletal frame (fixed assets and equity) but signs of circulatory stress (negative working capital) that could lead to short-term breathing difficulties (cash flow problems). With timely intervention focused on improving liquidity and cash management, the company can maintain its vitality and avoid financial complications.

---