Company Number: 13679894

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

Financial Health Assessment for KIM SWEETNESS TOUCH LIMITED

---

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.

---

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.

---

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.

---

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.

---