KINGSTON OAK TREE LTD

Executive Summary

Kingston Oak Tree Ltd is a micro-entity with improving but limited financial resources, showing positive net assets after previous deficits. While its current liquidity position is adequate for its scale, the company’s small size and narrow financial base mean credit facilities should be modest and possibly secured. Continued monitoring of cash flow and operational performance is recommended to mitigate risks associated with its concentrated ownership and limited asset base.

KINGSTON OAK TREE LTD - Analysis Report

Company Number: 13014231

Analysis Date: 2025-07-29 19:12 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Kingston Oak Tree Ltd presents a modest but improving financial position typical of a micro-entity in early years of operation. The company has moved from a negative net asset position in 2021-2022 to a positive net asset base of £4,094 in 2023, reflecting strengthening equity and reduced short-term liabilities. However, the absolute scale of assets and liabilities is very small, with no fixed assets and limited current assets. The company’s trading activity and cash flow generation appear limited, and its ability to service larger credit facilities is constrained. Approval for limited credit facilities could be considered if supported by personal guarantees or additional security, given the close control by a single director and shareholder.

2. Financial Strength:
   The balance sheet shows no fixed assets and current assets of approximately £5,094 against current liabilities of £1,000 as of 30 November 2023, yielding net current assets of £4,094. This is an improvement from prior years when net current assets were marginal and net assets were negative. The company’s net worth remains low but positive, indicating a fragile but improving capital base. The absence of long-term liabilities and provisions is positive. The single director holds 75-100% of shares and voting rights, which implies centralized control but also potential risk concentration. Overall, financial strength is limited but stable for a micro-sized educational service provider.

3. Cash Flow Assessment:
   Current assets mainly consist of cash and equivalents or receivables, with no indication of inventory or significant operational stock. The current liabilities have decreased from £4,656 in 2022 to £1,000 in 2023, indicating improved short-term liquidity management. Net current assets have increased, supporting working capital adequacy to cover short-term obligations. The single employee and low overhead nature of this educational business suggest modest cash flow requirements. However, given the small scale, cash flow volatility could pose risk if revenue streams are disrupted. Monitoring cash inflows and timely settlement of payables will be critical.

4. Monitoring Points:

• Maintain positive net current assets and avoid build-up of short-term liabilities.
• Track cash flow closely to ensure liquidity for operational needs and debt servicing.
• Review revenue trends and client retention in the education sector to assess growth sustainability.
• Monitor director’s ongoing financial support or injections, as the company depends heavily on single-person control.
• Watch for any changes in credit terms or overdue filings which could indicate operational stress.