Company Number: SC749712

Analysis Date: 2025-07-20 13:13 UTC

1. Risk Rating: LOW
   Kingdom Ceramics Limited is a recently incorporated micro-entity with a positive net asset position, net current assets, and no overdue accounts filings. The small scale and limited financial complexity reduce immediate solvency and liquidity risks.

2. Key Concerns:

• Overdue Confirmation Statement: The company’s confirmation statement is overdue as of November 2024, indicating a breach of regulatory compliance that should be rectified promptly to avoid penalties or further scrutiny.
• Limited Trading History: Incorporated in late 2022 and with only one financial year of filed accounts, the company’s operational stability and sustainability are not yet fully established. This limited track record may concern investors regarding future performance and market positioning.
• Working Capital Management: While net current assets are positive (£28,295), current liabilities (£78,382) are relatively high compared to fixed assets, suggesting close monitoring of short-term liquidity is warranted, especially as the company grows.

3. Positive Indicators:

• Positive Net Assets and Shareholders’ Funds (£37,538) reflect initial capital injection and a stable equity base.
• Net Current Assets are positive, indicating the company currently holds sufficient short-term assets to cover its short-term liabilities.
• Directors and Persons with Significant Control (PSCs) are aligned, both holding 25-50% shares and voting rights, which can facilitate consistent governance and decision-making.
• The company employs 7 persons, suggesting an operational scale beyond a sole proprietorship, which may indicate a developing business model.

4. Due Diligence Notes:

• Investigate reasons for the overdue confirmation statement and ensure compliance with all Companies House filing requirements going forward.
• Review cash flow forecasts and short-term creditor payment schedules to assess liquidity risk more granularly.
• Examine the business plan and market strategy to evaluate the company’s prospects for operational sustainability beyond its first year.
• Confirm no other regulatory or legal issues are outstanding, including any director conduct concerns or pending litigation.
• Validate the completeness and accuracy of financial statements, given they are unaudited and prepared under micro-entity provisions.