KIT GLOBAL CONSULTANCY LIMITED

Executive Summary

KIT GLOBAL CONSULTANCY LIMITED is currently financially stable but operates with a very limited asset and equity base, indicating a fragile financial position. Positive net current assets suggest short-term obligations are covered, but shrinking net assets and overdue filings highlight areas of concern. Focused cash flow management, compliance diligence, and operational efficiency improvements are recommended to bolster financial health and avoid distress.

KIT GLOBAL CONSULTANCY LIMITED - Analysis Report

Company Number: 12897302

Analysis Date: 2025-07-29 15:42 UTC

Financial Health Assessment of KIT GLOBAL CONSULTANCY LIMITED

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1. Financial Health Score: C

Explanation:
The company shows some positive signs such as positive net current assets in the latest year, indicating a degree of liquidity. However, the absolute values are very small, and the company has minimal fixed assets and very low current assets (£430) relative to prior years, showing potential operational scaling issues or cash flow constraints. The overdue confirmation statement filing also flags some governance concerns. Overall, the financial health is fair but fragile, needing attention to strengthen financial resilience.

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2. Key Vital Signs

Metric	2023 Value	Interpretation
Fixed Assets	£0	No long-term assets; company likely service-based.
Current Assets	£430	Very low working capital assets, possibly cash/debtors.
Current Liabilities	£82	Very low short-term obligations, manageable.
Net Current Assets	£348	Positive but small buffer for short-term debts.
Net Assets (Shareholders’ Funds)	£348	Positive equity but very limited capital base.
Average Employees	2	Small team, consistent with micro-entity status.
Overdue Confirmation Statement	Yes	Governance and compliance risk; potential penalties.

Interpretation:

• The company operates on a very small scale (micro-entity), with minimal tangible assets and a very tight working capital position.
• Positive net current assets indicate the company can cover its short-term liabilities, but the margin is thin—a "healthy cash flow" is critical here to avoid liquidity distress.
• The drastic drop in net assets from £1,405 in 2022 to £348 in 2023 suggests possible losses or withdrawals and warrants investigation.
• Overdue filings can be a symptom of administrative distress or resource constraints.

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3. Diagnosis

KIT GLOBAL CONSULTANCY LIMITED is a very small IT consultancy operating with minimal asset base and limited financial buffer. The company’s financial "vital signs" show a fragile state: while it is not insolvent, the shrinking net assets and very low current assets may reflect cash flow challenges or limited business activity. The positive net current assets suggest no immediate liquidity crisis, but the company must maintain vigilance in managing payables and receivables to avoid distress.

The overdue confirmation statement filing is a symptom of possible organizational or administrative strain, which can lead to penalties and reputational damage if unresolved. The business structure (micro-entity, two employees) is appropriate for the scale but leaves little room for error.

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4. Recommendations

To improve financial wellness and avoid future distress:

• Improve Cash Flow Monitoring:
  Maintain a detailed forecast of inflows and outflows to ensure "healthy cash flow." Given the low levels of current assets, even small delays in receivables or unexpected expenses can quickly become problematic.

• Increase Working Capital:
  Consider ways to build up cash reserves or secure short-term financing to buffer against operational fluctuations.

• Regular Compliance Management:
  Ensure timely filing of all statutory documents, including confirmation statements and accounts, to avoid penalties and maintain good standing.

• Operational Review:
  Analyze profit and loss trends to identify causes of declining net assets. Address any recurring losses or excessive director withdrawals.

• Cost Control:
  Given the small scale, keep fixed and variable costs tightly managed to protect the limited equity base.

• Engage with Stakeholders:
  Keep shareholders and directors informed about financial status and strategic plans to build confidence.

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