Company Number: 13826655

Analysis Date: 2025-07-20 12:52 UTC

1. Credit Opinion: DECLINE
   KINGPOLE LTD presents significant credit risk mainly due to its negative net asset position and recurring net current liabilities. The company’s liabilities exceed assets by £35,333 as of the latest accounts (January 2024), worsening from a negative £8,677 the prior year. Current liabilities, particularly creditors due within one year and those after one year, are substantial relative to very limited current assets and fixed assets. The absence of employees and the micro-entity status suggest limited operational scale and resources. These factors undermine its ability to service debt or meet short-term obligations reliably.

2. Financial Strength:
   The balance sheet shows fixed assets of approximately £195k, which remain fairly stable year-over-year, but current assets have decreased slightly to £5,735, coupled with current liabilities of £60,613 and long-term creditors of £174,991. The net current assets are negative by £54,878, indicating working capital deficiency and liquidity strain. The company’s shareholders’ funds are negative, reflecting accumulated losses or undercapitalization. This weak equity base and high gearing ratio (substantial debt relative to equity) significantly weaken financial resilience.

3. Cash Flow Assessment:
   Given the negative net current assets and high current liabilities, cash flow is likely constrained. The company’s low current asset base, combined with no recorded employees or operating revenues disclosed, suggests limited cash inflows. Without clear evidence of external funding or operational cash generation, liquidity risk is elevated. The large creditor balances due within one year may pressure the company’s ability to meet short-term financial commitments, increasing default risk.

4. Monitoring Points:

• Watch for improvements in net current assets and liquidity ratios (e.g., current ratio >1).
• Monitor changes in creditor balances, especially short-term liabilities.
• Assess any increase in equity or capital injections to restore positive net assets.
• Track any operational developments, including revenue generation or employee hires, signaling business scaling.
• Review timely filing of accounts and confirmation statements for governance compliance.