KJ AUTOPARTS LIMITED

Executive Summary

KJ AUTOPARTS LIMITED, a recently incorporated private limited company, shows significant financial stress in its first year with negative net assets and working capital deficits. While regulatory filings are up to date and ownership structure is clear, the company faces high solvency and liquidity risks. Further inquiry into cash flow management and creditor arrangements is recommended before considering investment.

KJ AUTOPARTS LIMITED - Analysis Report

Company Number: 14616948

Analysis Date: 2025-07-29 20:19 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk due to negative net assets and negative working capital within its first year of operation. The net liabilities position indicates the company’s current liabilities exceed its assets substantially, posing a threat to its ability to meet short-term obligations.

2. Key Concerns:

• Negative Net Assets: Shareholders’ funds stand at -£3,379, indicating the company’s liabilities exceed assets. This weak equity base is a serious red flag for financial stability.
• Negative Working Capital: Current liabilities (£10,307) exceed current assets (£6,928), resulting in net current liabilities of -£3,379, which may cause liquidity constraints.
• Limited Operating History: Incorporated in 2023, with only one set of accounts filed, there is insufficient financial track record to assess operational sustainability or profitability trends.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statements are filed on time, demonstrating regulatory compliance and good governance practices.
• Clear Ownership and Management: The sole director and 75-100% shareholder is identified, which may simplify decision-making and accountability.
• Industry Focus: Engaged in retail and wholesale of motor vehicle parts and accessories (SIC codes 45320 and 45310), sectors with steady demand if managed well.

4. Due Diligence Notes:

• Cash Flow Projections: Obtain detailed cash flow forecasts to determine if the company can manage its current liabilities given low cash reserves (£1,366).
• Debt Terms and Creditor Relations: Investigate the nature and terms of the £10,306 other creditors to assess risks of default or supplier withdrawal.
• Business Plan and Funding: Review the company’s strategy for addressing negative equity and funding sources to support ongoing operations and growth.
• Director Background: Verify any prior directorships or potential red flags related to the director, although none are evident from current data.