KINGSTONE LAND AND PROPERTY CO. LTD

Executive Summary

Kingstone Land and Property Co. Ltd currently exhibits significant financial strain highlighted by negative net current assets and shareholders’ funds, indicating liquidity and solvency challenges. Immediate actions are needed to bolster equity, manage liabilities, and boost operational cash flow to restore financial health and ensure sustainable operations.

KINGSTONE LAND AND PROPERTY CO. LTD - Analysis Report

Company Number: 13272644

Analysis Date: 2025-07-29 19:37 UTC

Financial Health Assessment: KINGSTONE LAND AND PROPERTY CO. LTD

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1. Financial Health Score: D

Explanation:
The company shows signs of financial distress with negative net current assets and negative shareholders’ funds. The limited asset base and small scale of operations, combined with the absence of profitability data, suggest constrained financial health. While still active and compliant with filings, the company’s balance sheet indicates underlying liquidity and solvency issues.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Share Capital	1	Minimal equity base, indicating very small initial funding
Debtors	44	Very low receivables, suggesting limited ongoing operations
Current Liabilities	1,266	Overdue or immediate debts exceed current assets
Net Current Assets	-1,222	Negative working capital, a symptom of liquidity stress
Total Assets Less Liabilities	-1,222	Indicates insolvency on a net asset basis
Shareholders’ Funds	-1,223	Negative equity, signaling accumulated losses or undercapitalization

Additional Notes:

• The company is classified as a small private limited company, filing unaudited abridged accounts with minimal disclosures.
• No employees, indicating limited operational scale or outsourcing of activities.
• Related party debt of £785.62 owed to a connected company (JHD Solutions Limited) without interest may imply reliance on related party funding.

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3. Diagnosis: Financial Condition

The company is currently exhibiting "symptoms of distress" akin to a patient with poor vital signs:

• Liquidity Crunch: Negative net current assets mean short-term obligations exceed liquid assets, risking payment difficulties.
• Solvency Concerns: Negative shareholders’ funds indicate that liabilities outweigh assets, which is a fundamental weakness in the company’s financial structure.
• Limited Operating Scale: Minimal debtors and no employees suggest the company is either in an early stage or has very limited operations, impacting the generation of positive cash flow.
• Dependence on Related Parties: The amount owed to a related company suggests that external funding sources may be limited or not utilized.

Although the company remains active with no overdue filings, these financial parameters signal that without intervention, the company could face solvency challenges, analogous to a patient at risk of worsening health without treatment.

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4. Recommendations: Improving Financial Wellness

• Inject Equity Capital: To strengthen the balance sheet, the company should consider additional capital injections to improve shareholders’ funds and net assets, akin to a transfusion to revive a weakened patient.
• Manage and Reduce Liabilities: Prioritize restructuring or negotiating current liabilities to reduce immediate payment pressures and improve liquidity. Consider converting related party loans into equity if possible.
• Enhance Revenue Generation: Increase operational activities or diversify revenue streams to improve debtor balances and generate positive cash inflows, restoring healthy cash flow.
• Implement Cash Flow Forecasting: Regular cash flow monitoring and forecasting will help anticipate liquidity needs and avoid financial shocks.
• Review Cost Structure: With no employees, the company may already have a lean cost base, but any unnecessary expenses should be trimmed to conserve cash.
• Engage Financial Advisory Support: Given the negative net assets, professional advice on turnaround strategies and compliance is advisable to avoid insolvency risks.

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