Company Number: 13193502

Analysis Date: 2025-07-19 12:54 UTC

1. Risk Rating: HIGH
   Justification: Kiwi Homes Limited exhibits significant solvency and liquidity risks as evidenced by persistent and worsening negative net current assets and shareholders’ funds over multiple years. The company’s liabilities exceed its assets by a substantial margin, indicating an inability to meet short-term debts without external support.

2. Key Concerns:

• Solvency Risk: The company’s net current liabilities have increased from approximately £59k negative in 2023 to £71k negative in 2024, with shareholders’ funds reflecting a similar deficit. This points to ongoing financial distress and potential insolvency risk.
• Liquidity Concerns: Current liabilities exceed current assets by a large amount, suggesting cash flow difficulties and potential challenges in meeting immediate obligations. No employees are recorded, indicating possible operational inactivity or reliance on directors for work and funding.
• Operational Stability: The absence of employees combined with negative equity and lack of audited accounts raises questions about the sustainability of operations and management’s ability to stabilize or grow the business.

3. Positive Indicators:

• The company is active, with no overdue filings or compliance issues noted, demonstrating regulatory compliance and governance discipline in terms of statutory obligations.
• The company operates in a defined sector (construction of domestic buildings) with an active website and contact information, indicating ongoing commercial presence and business intentions.
• Multiple directors and persons of significant control hold substantial shareholdings, implying committed ownership which could support turnaround efforts.

4. Due Diligence Notes:

• Investigate the nature and composition of current liabilities to understand creditor profiles, repayment terms, and any contingent liabilities.
• Review cash flow statements and bank balances to assess liquidity beyond balance sheet snapshots.
• Confirm whether the company has access to external funding or director loans that support ongoing operations despite negative equity.
• Clarify the business model and current trading status given the absence of employees and explore whether subcontractors or third parties are engaged.
• Evaluate any related party transactions or director guarantees that may impact financial stability.