KMKS BUILDERS LTD

Executive Summary

KMKS BUILDERS LTD is a recently incorporated micro-entity operating in real estate with minimal financial resources and working capital. While it maintains good compliance with filing requirements and has clear ownership, its extremely low net assets and short operating history present elevated solvency and liquidity risks. Further due diligence on cash flows and asset quality is recommended to better understand operational stability.

KMKS BUILDERS LTD - Analysis Report

Company Number: 15076986

Analysis Date: 2025-07-20 14:41 UTC

1. Risk Rating: HIGH
   The company exhibits a very thin net asset base (£97) and virtually zero working capital, indicating minimal financial buffer. As a newly incorporated micro-entity with limited operating history and only one employee, the risk that it may struggle to meet obligations or sustain operations is elevated.

2. Key Concerns:

• Extremely Low Net Assets and Working Capital: With current assets nearly equal to current liabilities, the company has negligible liquidity cushion. Any unforeseen expenses or delays in receivables could impair solvency.
• Newly Incorporated with Limited Track Record: Incorporated less than one year ago, limited operating history restricts the ability to assess financial stability or operational sustainability.
• Single Director and Shareholder Control: Concentrated ownership and control in one individual may elevate governance risk and limit checks and balances.

3. Positive Indicators:

• Compliance with Filing Requirements: All statutory accounts and confirmation statements are up to date with no overdue filings, indicating good regulatory compliance.
• Clear Industry Classification: The company operates in real estate activities (buying, selling, letting) which can generate stable income streams if managed effectively.
• No Indication of Insolvency or Liquidation: Company status is active with no formal insolvency proceedings or disqualification records.

4. Due Diligence Notes:

• Review detailed cash flow projections and bank statements to assess liquidity beyond the year-end snapshot.
• Investigate the nature and valuation of current assets to verify they are realizable and not overstated.
• Assess contracts or pipeline of real estate deals to understand revenue generation capacity.
• Confirm director’s background and capability given sole control and operational responsibility.
• Monitor forthcoming accounts for growth in net assets and profitability indicators.