KINDLE SCENTS LIMITED

Executive Summary

Kindle Scents Limited is an early-stage micro-entity exhibiting weak financial health with negative net assets and working capital deficits. The company’s lack of fixed assets and limited trading history raise concerns about its ability to service debt or credit obligations. Credit facilities are not recommended until the company demonstrates improved liquidity and operational stability.

KINDLE SCENTS LIMITED - Analysis Report

Company Number: 15085542

Analysis Date: 2025-07-29 15:49 UTC

1. Credit Opinion: DECLINE
   Kindle Scents Limited is a newly incorporated micro-entity with a net current liability position of £1,964 and negative net assets at the balance sheet date. The company’s fixed assets are nil, and current liabilities exceed current assets, indicating immediate liquidity pressure. With only one employee and minimal trading history, there is insufficient evidence of stable cash flows or profitability to support loan repayment or credit extension. The director’s occupation as a retail assistant suggests limited financial or managerial experience to navigate early-stage business risks. Given these factors, the company currently lacks the financial strength and operational scale to reliably service debt or commercial credit.

2. Financial Strength:
   The balance sheet reflects negative net assets of £1,964 despite a modest current asset base of £1,776. The absence of fixed assets means the company has no tangible collateral. The excess of current liabilities over current assets implies working capital deficiency. Shareholders’ funds mirror the negative net asset figure, pointing to an undercapitalized position. Overall, the company’s financial foundation is weak, with potential solvency concerns if liabilities mature before the business can generate sufficient revenue.

3. Cash Flow Assessment:
   Current liabilities of £3,740 outweigh current assets, indicating tight liquidity. The company’s limited operating history and micro-entity status suggest cash inflows are likely minimal and irregular at this stage. Without access to additional capital or credit facilities, the company may struggle to meet short-term obligations, including supplier payments and operational expenses. The singular employee and early stage of business further limit cash generation potential.

4. Monitoring Points:

• Improvement in net current assets and positive working capital generation.
• Evidence of growing revenues and profitability in future accounts.
• Timely settlement of creditors and avoidance of overdue payments.
• Director’s financial management capabilities and any additional capital injections.
• Filing of next annual accounts and confirmation statement without delays.