KIM SWEETNESS TOUCH LIMITED

Executive Summary

KIM SWEETNESS TOUCH LIMITED is exhibiting critical financial distress with negative net assets and extremely low liquidity, indicating insolvency risk. Immediate capital restructuring and operational reassessment are vital to restore financial health and avoid formal insolvency. Without prompt intervention, the company’s financial prognosis is poor.

KIM SWEETNESS TOUCH LIMITED - Analysis Report

Company Number: 13679894

Analysis Date: 2025-07-29 18:03 UTC

Financial Health Assessment for KIM SWEETNESS TOUCH LIMITED

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1. Financial Health Score: F

Explanation:
The company shows critical signs of financial distress, with a negative net asset position of £19,445, indicating liabilities exceed assets. This is a serious red flag akin to a patient with severely low vital signs requiring immediate intervention. The lack of current assets to cover even short-term liabilities signals a precarious liquidity position.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	1	Critically low cash or liquid assets; unhealthy "cash flow pulse."
Current Liabilities	19,096	High short-term debts; immediate obligations cannot be met with available liquid assets.
Net Current Assets (Working Capital)	1	Virtually zero working capital; company lacks buffer to manage daily operations.
Total Assets Less Current Liabilities	1	Assets barely cover current liabilities, no safety margin.
Creditors Due After More Than One Year	19,096	Long-term debt burden equal to current liabilities; heavy leverage.
Net Assets (Shareholders' Funds)	-19,445	Negative equity; company balance sheet is "unhealthy," indicating insolvency symptoms.
Number of Employees	0	No staff employed; possibly dormant operationally or minimal activity.

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3. Diagnosis

KIM SWEETNESS TOUCH LIMITED demonstrates symptoms of severe financial distress:

• Negative net assets: The company’s liabilities exceed its assets by £19,445, a critical symptom of insolvency risk.
• Liquidity crisis: With only £1 in current assets, the company cannot meet its current liabilities of £19,096, indicating a dangerously low cash flow position.
• Leverage: The presence of significant creditors both short and long term signals a heavy debt burden.
• Operational inactivity: No employees and no growth in assets or liabilities over the last two years suggest stagnation or minimal business activity.
• No recent improvement: Financial figures for 2023 and 2024 are identical, showing no turnaround or recovery in financial health.

Overall, the company is in a critical condition with a high risk of insolvency unless corrective actions are taken urgently.

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4. Recommendations

To improve financial wellness, KIM SWEETNESS TOUCH LIMITED should consider the following actions akin to a treatment plan for a patient in critical condition:

1. Capital Injection or Debt Restructuring:
   Seek additional equity investment or negotiate with creditors to restructure existing debt to reduce financial burden and restore positive net assets.

2. Liquidity Management:
   Improve cash flow through accelerated receivables collection or sale of non-essential assets to increase current assets.

3. Operational Review:
   Assess the business model viability and explore options to restart or scale operations if feasible to generate revenue.

4. Cost Control:
   Minimise overheads and discretionary spending since no employees are currently present; ensure essential costs are covered without further borrowing.

5. Professional Advice:
   Consult insolvency practitioners or financial advisors for turnaround strategies or, if unavoidable, prepare for formal insolvency procedures to manage creditor outcomes.

6. Regular Monitoring:
   Implement strict financial monitoring to track improvements in liquidity and solvency metrics, akin to ongoing medical check-ups.

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