KIVSK LIMITED

Executive Summary

KIVSK LIMITED is currently in a fragile financial state with negative net assets and poor liquidity, signaling significant distress. The company’s large fixed asset base is offset by heavy liabilities, leading to negative equity and working capital deficits. Immediate actions such as debt restructuring, capital injection, and liquidity management are essential to avoid insolvency and restore financial health.

KIVSK LIMITED - Analysis Report

Company Number: 13196608

Analysis Date: 2025-07-29 20:07 UTC

Financial Health Assessment: KIVSK LIMITED (as of 31 March 2024)

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1. Financial Health Score: D

Explanation:
KIVSK LIMITED shows signs of significant financial distress, indicated by a negative net asset position and liabilities exceeding assets. While it holds substantial fixed assets, the company’s current liabilities greatly outweigh current assets, causing a working capital deficit. This situation reflects symptoms akin to a patient with compromised organ function — the balance sheet is fragile, and urgent attention is needed to stabilize operations.

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2. Key Vital Signs (Core Financial Metrics)

Metric	Value (£)	Interpretation
Fixed Assets	418,339	Strong investment in long-term assets; stable base
Current Assets	1,557	Very low liquid assets; poor short-term liquidity
Current Liabilities	423,534	Very high short-term obligations; potential stress
Net Current Assets	-421,977	Negative working capital; "cash flow distress"
Total Assets Less Current Liabilities	-4,195	Negative; liabilities outweigh assets before long-term debts
Creditors due after 1 year	423,534	Large long-term debt; heavy leverage
Accruals and Deferred Income	729	Minor timing differences in income/expenses
Net Assets / Shareholders’ Funds	-8,761	Negative equity; company value is eroded
Share Capital	2	Minimal equity base; very limited shareholder cushion

Additional Observations:

• The company has no employees, indicating a lean structure or non-operational status.
• The company is classified as a Micro-entity, limiting disclosure but also indicating a small scale.
• The sector (SIC 68209) relates to real estate letting/operating, which typically has stable asset bases but requires good cash flow management.

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3. Diagnosis: Financial Condition and Symptoms Analysis

KIVSK LIMITED is exhibiting classic symptoms of financial distress, including:

• Negative Net Current Assets: The company’s short-term commitments vastly exceed its liquid resources, a sign of poor liquidity and potential inability to meet immediate obligations.
• Negative Net Assets (Equity): The company’s total liabilities surpass its total assets, leading to negative shareholders’ funds. This resembles a patient whose vital signs fall outside a healthy range, indicating a serious condition.
• High Leverage: Long-term creditors’ claims exceed fixed assets, meaning the company is heavily financed by debt, increasing financial risk.
• Minimal Share Capital: The company has a negligible equity buffer to absorb losses or finance growth.
• No Employees: Indicates minimal operational activity, possibly reflecting a holding or asset management company rather than an active trading business.

Underlying Issues:
The financial data suggests the company is under strain from heavy debts relative to assets and poor liquidity. This could be due to operational losses, capital structure issues, or cash flow mismanagement. Without intervention, the company risks insolvency or inability to continue as a going concern.

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4. Prognosis: Future Financial Outlook

Given the current financial indicators:

• The company faces a high risk of continued distress unless it restructures debt, improves cash flow, or secures additional equity.
• Without improving liquidity and reducing liabilities, the company may face insolvency proceedings.
• The fixed assets base provides some collateral value, which could be leveraged for refinancing or sale.
• The absence of employees suggests limited operational flexibility to generate new income streams.
• If corrective actions are taken, such as debt renegotiation or capital injection, the prognosis could improve significantly.

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5. Recommendations: Steps to Improve Financial Wellness

• Liquidity Improvement: Seek short-term financing or asset sales to boost working capital and meet immediate liabilities.
• Debt Restructuring: Negotiate with creditors to extend repayment terms or reduce debt burden to restore solvency.
• Capital Injection: Consider raising additional equity from shareholders or external investors to rebuild the financial cushion.
• Operational Review: If active operations exist, optimize costs and revenue streams to improve cash flow; if dormant, consider asset realignment or sale.
• Financial Monitoring: Implement regular financial health checks (like vital sign monitoring) to track improvements and detect early distress signs.
• Professional Advice: Engage insolvency or restructuring experts early to explore formal or informal turnaround options.

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