KINDTWO CONSULTING LTD

Executive Summary

Kindtwo Consulting Ltd, a micro-sized management consultancy, has demonstrated a marked improvement in financial position within its first two years, recovering from initial losses to a positive net asset and working capital position. While credit approval is recommended, it should be conditional on regular financial monitoring due to the company’s nascent stage and limited trading history. The company's current liquidity and capital structure provide reasonable confidence in its ability to meet short-term obligations.

KINDTWO CONSULTING LTD - Analysis Report

Company Number: 14692552

Analysis Date: 2025-07-29 12:27 UTC

1. Credit Opinion: APPROVE with monitoring conditions
   Kindtwo Consulting Ltd is a newly incorporated micro private limited company in management consultancy with a single director and sole shareholder. The latest filed accounts (year ending March 31, 2025) show a strong turnaround from initial negative net assets to positive shareholders’ funds of £17,229 and positive net current assets of £16,757, indicating improved financial health. The company demonstrates early stage growth and prudent management of liabilities. However, given its short trading history and limited financial scope, credit approval should be conditional on regular financial updates and cash flow monitoring.

2. Financial Strength:
   The balance sheet shows modest fixed assets (£472) and an increase in current assets from £111 to £22,699 over one year, reflecting growing operational activity or cash position improvement. Current liabilities remain stable (£5,942) with net current assets improving substantially to £16,757, which indicates adequate short-term liquidity to cover immediate obligations. Shareholders’ funds increased from a negative position to a positive £17,229, demonstrating capital injection or retained earnings growth. The company is micro-sized and its financial structure is sound for its scale, but total asset base and equity remain low in absolute terms.

3. Cash Flow Assessment:
   Current assets are largely liquid and exceed current liabilities by a comfortable margin, suggesting strong working capital management and liquidity. The improvement in net current assets from negative to positive territory implies effective cash inflows or receivables management. However, specific cash flow statements are not available; thus, ongoing monitoring of cash conversion cycles and debtor collection is recommended to ensure sustained liquidity.

4. Monitoring Points:

• Track subsequent annual accounts to confirm continued profitability and asset growth.
• Monitor liquidity ratios and working capital trends, ensuring current assets consistently cover short-term liabilities.
• Review director’s trading updates or management accounts for any signs of cash flow stress or increased borrowing.
• Watch for any changes in director or ownership that may affect governance or financial stewardship.