KLA PROPERTY LTD

Executive Summary

KLA Property Ltd is facing significant solvency and liquidity risks, with persistent negative equity and net current liabilities exceeding cash reserves. While regulatory filings are current and the company holds investment property, the financial position raises serious concerns about operational sustainability and ability to meet obligations. Further due diligence is required on the nature of liabilities, cash flows, and business viability before considering investment exposure.

KLA PROPERTY LTD - Analysis Report

Company Number: 13481016

Analysis Date: 2025-07-29 19:12 UTC

1. Risk Rating: HIGH
   The company exhibits clear signs of financial distress with persistent negative net current assets and shareholders' funds, indicating insolvency risk. The current liabilities substantially exceed current assets, and shareholders' funds are negative and worsening over the reported years.

2. Key Concerns:

• Solvency Risk: The company’s total assets less current liabilities and shareholders’ funds are negative (£-9,918 in 2024), reflecting that liabilities exceed assets, which may impair its ability to meet obligations.
• Liquidity Concerns: Cash balances (~£95k) are significantly lower than current liabilities (~£184k), resulting in a net current liability position (~£-84.5k), suggesting short-term cash flow constraints.
• Operational Sustainability: The absence of employees and recurring negative equity over multiple years raise questions about the business’s operational viability and ability to generate profits or positive cash flow.

3. Positive Indicators:

• Filing Compliance: No overdue accounts or confirmation statements; filings are up to date, indicating good regulatory compliance.
• Investment Property Asset: The company holds investment property valued at £74,595, providing some tangible asset backing.
• Stable Directors and PSC: Directors and significant control are transparent and have consistent addresses without any noted disqualifications.

4. Due Diligence Notes:

• Investigate the nature and terms of the £184k current liabilities—whether these are short-term borrowings, trade creditors, or related party loans, and their maturity profile.
• Assess cash flow statements or management accounts (not provided) to understand operational cash generation and potential plans for addressing negative equity.
• Clarify the business model and revenue streams, given the absence of employees and the involvement in property management and real estate activities.
• Review any related party transactions or financial support from shareholders or directors, especially given the significant control by Mr Kevin Barrie Prosser.
• Confirm if the company has any ongoing litigation, regulatory issues, or contingent liabilities not disclosed in accounts.