Company Number: 13133270

Analysis Date: 2025-07-19 12:12 UTC

Financial Health Assessment of KINGMADE LIMITED

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1. Financial Health Score: B

Explanation:
KINGMADE LIMITED demonstrates a solid financial position for a micro-entity company operating in creative industries such as performing arts and advertising. The company maintains positive net assets and net current assets, indicating healthy liquidity and solvency. However, a slight decline in total assets and net assets over the last year suggests a mild contraction or cautious financial management, warranting close monitoring.

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2. Key Vital Signs

Metric	2024 Value (£)	2023 Value (£)	Interpretation
Fixed Assets	1,515	1,783	Small long-term asset base, consistent with a service-based company with limited physical assets.
Current Assets	18,353	20,980	Adequate current assets primarily cash and receivables; slight decline may reflect reduced cash.
Current Liabilities	6,262	8,451	Reduction in short-term debts is a positive sign, easing pressure on immediate obligations.
Net Current Assets	12,091	12,529	Healthy working capital, indicating the company can comfortably cover short-term debts.
Total Net Assets	13,606	14,312	Positive equity base showing business value exceeds liabilities; slight decrease needs monitoring.
Share Capital	1.00	1.00	Nominal share capital typical for micro-entities; does not impact financial strength importantly.
Average Employees	1	1	Very lean staffing, consistent with micro-entity status and low operating overhead.

Additional Observations:

• The company is solvent with net assets well above zero.
• No audit requirement under micro-entity provisions, so figures are unaudited but comply with legal standards.
• Director and Secretary are the same individual, indicating a tightly controlled business structure.
• Owner holds 75-100% shares and voting rights, indicating full control and likely direct involvement in operations.

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3. Diagnosis: Financial Condition Analysis

KINGMADE LIMITED exhibits the "vital signs" of a financially stable micro-entity with positive net assets and working capital, signaling the absence of immediate financial distress. The company’s "cash flow" position appears "healthy" given the positive net current assets, meaning it can meet short-term liabilities comfortably — akin to a patient with good hydration and stable vital signs.

There is a mild "symptom" of asset contraction (decline in fixed and current assets) and a slight drop in net assets from £14,312 to £13,606 over the last year. This could indicate cautious spending, minor business contraction, or timing differences in cash inflows/outflows. Since the company is young (incorporated in 2021) and operates in creative sectors that can be volatile, this is not a critical issue but merits attention.

Overall, the "diagnosis" is that KINGMADE LIMITED is financially healthy, with no signs of distress like net liabilities or cash shortages. The modest capital base and single-employee structure suggest a small-scale, founder-driven business, typical of micro-entities in creative industries.

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4. Recommendations

To maintain and enhance financial wellness, the company should consider the following "treatment plan":

• Monitor Cash Flow Closely: Ensure that the slight decline in current assets does not accelerate; maintain strong cash reserves to avoid liquidity stress.
• Plan for Growth or Diversification: Explore opportunities to increase assets or revenue streams to prevent stagnation and strengthen net asset base.
• Maintain Low Debt Levels: Continue managing current liabilities prudently to sustain positive working capital.
• Regular Financial Reviews: Implement periodic financial health checks, even if not audited, to catch early warning signs.
• Succession and Control Planning: Given the sole director/shareholder structure, consider plans for governance continuity and risk management.
• Leverage Industry Networks: As a micro-entity in performing arts and advertising, actively seek collaborations and contracts to build stable income.

By following these steps, KINGMADE LIMITED can remain financially robust and position itself for sustainable growth.

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