KINDRED ESTATES LIMITED

Executive Summary

Kindred Estates Limited is a newly incorporated micro-entity operating in property letting with a weak financial position characterized by negative net assets and a severe working capital deficit. The company’s current financials do not support an ability to service debt or withstand financial stress, resulting in a credit decline recommendation. Close monitoring of liquidity improvements and capital injections is essential if credit facilities are to be reconsidered later.

KINDRED ESTATES LIMITED - Analysis Report

Company Number: 14718511

Analysis Date: 2025-07-29 19:11 UTC

1. Credit Opinion: DECLINE

Kindred Estates Limited presents significant credit risk at this early stage of its operations. The company’s net liabilities position of £3,827 and a severe working capital deficit of £756,427 indicate an inability to meet short-term obligations from current assets. Given the company’s micro-entity status, no employees, and substantial current liabilities exceeding current assets, it lacks the financial resilience needed to service debt or absorb economic shocks. Additionally, the company has not demonstrated operational history or profitability, which further impairs confidence in its capacity to honor credit facilities.

2. Financial Strength:

The balance sheet reveals a fixed asset base of £753,200, presumably property or leasehold interests, which may provide some collateral value. However, the current liabilities of £770,500 overwhelmingly exceed current assets of £8,473, resulting in negative net current assets of £756,427. The company’s net assets and shareholders’ funds are negative (£3,827), reflecting an undercapitalized position and net liability status. The absence of employees and minimal current assets raise concerns about the company’s operational scale and ability to generate income to improve financial standing.

3. Cash Flow Assessment:

With current liabilities nearly 100 times current assets, liquidity is critically constrained. The company’s working capital deficit implies it may struggle to pay creditors or meet short-term cash needs without external funding or asset disposals. The lack of trading history and no reported cash or equivalents exacerbate concerns about near-term cash flow sufficiency. The substantial accruals and deferred income, although minor (£600), do not offset the large creditor balances, indicating poor short-term liquidity management.

4. Monitoring Points:

• Track progress in reducing current liabilities and improving net current assets.
• Monitor any new financing or equity injections to bolster capital and liquidity.
• Watch for filing of subsequent accounts to assess operational performance and cash generation.
• Review any changes in director appointments or PSC structure that might impact governance.
• Assess collateral realizability of fixed assets if credit exposure is considered in the future.