KMC LEISURE MANAGEMENT CONSULTANCY LTD

Executive Summary

KMC Leisure Management Consultancy Ltd is a micro-entity with minimal financial activity and declining net assets, reflecting a weak financial position and lack of operational scale. The company’s negligible liquidity and absence of liabilities suggest limited credit risk exposure but also no capacity to service debt. Given these factors, credit approval is not recommended without significant improvement in financial metrics or business activity.

KMC LEISURE MANAGEMENT CONSULTANCY LTD - Analysis Report

Company Number: SC657292

Analysis Date: 2025-07-29 18:16 UTC

1. Credit Opinion: DECLINE
   KMC Leisure Management Consultancy Ltd shows extremely limited financial scale and activity, with marginal net assets (£19 in 2025) and negligible current assets (£19). The company has no employees and minimal operational presence, reflected by micro-entity reporting. The sharp decline in net assets from £140 in 2022 to £19 in 2025 signals erosion of financial base. Absence of liabilities is positive but likely due to inactivity rather than strong credit management. Overall, the company lacks sufficient financial strength or trading history to support credit extension.

2. Financial Strength:
   The balance sheet is minimal. Net assets have declined steadily from £304 in 2020 to £19 in 2025. Current assets have decreased from £1,763 in 2020 to £19 in 2025, with no fixed assets recorded at any time. Current liabilities are zero, indicating no short-term debt, but this also reflects a lack of ongoing business commitments or suppliers. Shareholders’ funds mirror net assets, fully contributed by the sole director. The company’s financial position is very weak and does not demonstrate growth or resilience.

3. Cash Flow Assessment:
   Current assets are insufficient to indicate meaningful liquidity or working capital. The absence of current liabilities removes immediate repayment pressure; however, the negligible cash or equivalents (£19) suggests no operational cash flow. The company has no employees and likely very limited business activity, impairing its ability to generate cash to service debt or cover operating expenses. No evidence of positive cash flow or working capital buffer exists.

4. Monitoring Points:

• Watch for any significant increase in assets or turnover indicating operational ramp-up.
• Monitor for accumulation of liabilities or overdue accounts which could indicate financial stress.
• Director’s continued financial support or injection of capital to improve net assets.
• Filing compliance and any changes in company status or control that might affect credit risk.