Company Number: 13584551

Analysis Date: 2025-07-19 12:26 UTC

1. Credit Opinion: DECLINE
   KLM TAKEAWAY LTD presents significant financial weaknesses with persistent negative net current assets and net liabilities, indicating an inability to cover short-term debts. Despite being active and filing accounts on time, the company shows ongoing losses and erosion of shareholder funds since incorporation. The micro-entity status and minimal asset base provide limited security for lending. The negative working capital and net liabilities raise concerns about repayment capacity and financial resilience. Without evidence of profitability or cash flow improvement, extending credit poses high risk.

2. Financial Strength:
   The balance sheet reveals current assets of only £989 against current liabilities of £3,106 as of 31 August 2024, resulting in net current liabilities of £2,117. Net assets and shareholders’ funds are negative by the same amount, though this is an improvement from the previous year’s larger deficit (£7,873). The company has no fixed assets reported, limiting collateral value. The steady but insufficient increase in current assets and reduction in liabilities suggests some operational improvement but still weak financial structure.

3. Cash Flow Assessment:
   Liquidity is very constrained with cash levels not explicitly disclosed but implied to be minimal given the low current assets figure. The company’s working capital deficit indicates ongoing liquidity pressure, making it difficult to meet short-term obligations without additional financing or cash injections. The average employee count of 8 implies ongoing payroll commitments that may strain cash flow further. No off-balance-sheet liabilities are disclosed, so contingent risks appear limited.

4. Monitoring Points:

• Improvement in net current assets and reduction of liabilities should be tracked closely.
• Profitability trends in future accounts to assess turnaround viability.
• Cash flow statements, if available, to monitor operational liquidity.
• Timeliness and quality of future filings as an indicator of management control.
• Any changes in ownership or capital injections to strengthen equity base.