KK ASSET MANAGEMENT LTD

Executive Summary

KK ASSET MANAGEMENT LTD has a strong fixed asset base in investment properties but faces liquidity constraints and high leverage, resulting in a modest net asset position. The company is compliant with filing obligations and appears operationally lean, yet the financial structure suggests moderate risk in meeting short and long-term obligations without further capital or refinancing. Further inquiry into creditor terms and operational cash flows is recommended to better assess financial stability.

KK ASSET MANAGEMENT LTD - Analysis Report

Company Number: 13111433

Analysis Date: 2025-07-20 13:09 UTC

1. Risk Rating: MEDIUM
   KK ASSET MANAGEMENT LTD shows a solid asset base in investment properties but exhibits constrained liquidity and very low net assets, suggesting some financial strain. The company is not in liquidation and filings are up to date, which is positive, but the high level of creditors relative to cash and net assets indicates moderate solvency and liquidity risk.

2. Key Concerns:

• Liquidity Pressure: Cash reserves have declined significantly from £65,702 to £19,246 over the last year, while current liabilities remain high (£605,022), indicating tight short-term cash flow.
• High Borrowings: Creditors due after more than one year stand at £605,022, nearly matching the fixed assets value, showing the company is highly leveraged against its property holdings.
• Low Net Asset Value: Net assets have decreased from £12,190 (2023) to just £3,062 (2024), reflecting limited equity buffer and potential vulnerability if asset values decline or liabilities increase.

3. Positive Indicators:

• Stable Fixed Assets: Investment properties are held at consistent valuation (£591,050) with no impairments or disposals, providing a tangible asset base.
• Compliance: The company is current with both accounts and confirmation statement filings, with no overdue returns, indicating good regulatory compliance and governance.
• No Employees: With zero employees, operating costs may be low, possibly reflecting a lean business model focused on property management or investment.

4. Due Diligence Notes:

• Investigate the nature, terms, and security of the £605,022 long-term creditors to assess refinancing risk and creditor relationships.
• Clarify how the company is managing cash flow given the significant drop in cash reserves and high current liabilities.
• Review valuation policies for the investment properties and confirm whether fair value measurement is up to date and realistic.
• Obtain income statement or profit/loss data (not filed publicly) to assess operational profitability and cash generation.
• Confirm absence of director disqualifications or governance issues beyond current filings.