K.MOULTON LTD

Executive Summary

K.MOULTON LTD demonstrates a solid financial foundation for a newly incorporated IT consultancy, with positive net assets and sufficient liquidity to meet current obligations. The company is currently in an early development phase, showing no signs of distress but lacking detailed operational data. Continued focus on profitability tracking, cash flow management, and governance will be crucial to sustaining and improving financial wellness as the business grows.

K.MOULTON LTD - Analysis Report

Company Number: 15267423

Analysis Date: 2025-07-29 15:16 UTC

Financial Health Assessment Report for K.MOULTON LTD

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1. Financial Health Score: B

Explanation:
K.MOULTON LTD shows early signs of financial stability with positive net assets and healthy working capital relative to its size and stage. The absence of liabilities beyond short-term creditors and positive equity is a good sign for a company in its first year of trading. However, limited operational history and absence of profit and loss information restrict a full evaluation. The score "B" reflects a cautiously positive status with room to monitor and strengthen as the business grows.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Cash at Bank	7,679	Indicates a "healthy cash flow" buffer for a new start-up. Adequate for immediate obligations.
Current Liabilities	2,087	Low short-term debts; manageable and not a strain on liquidity.
Net Current Assets	5,592	Positive working capital signals operational liquidity strength—"healthy pulse" in financial terms.
Net Assets (Equity)	5,592	Positive shareholder funds indicate the company is solvent with a solid equity base.
Average Employees	0	No staff employed yet; could imply low overhead but also limited operational scale.
Company Age	~1 year	Early stage; financials reflect start-up phase with minimal historic data.

Additional observations:

• The company is exempt from audit and has prepared abridged accounts, common for micro-entities.
• The director reports a "going concern" basis with positive outlook but no detailed profitability or turnover data yet.
• No long-term assets or debts reported, which is typical for a start-up IT consultancy.
• Shareholder control is concentrated with the sole director owning 75-100% shares, suggesting streamlined decision-making but also concentration risk.

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3. Diagnosis: What the Financial Data Reveals

K.MOULTON LTD is in the "incubation" stage of its financial lifecycle. The company exhibits the vital signs of a financially sound start-up with positive net assets and working capital, indicating no immediate liquidity distress or solvency risks ("no symptoms of financial distress"). The cash position is adequate to cover current liabilities, providing a "healthy heartbeat" for day-to-day operations.

However, the absence of employees, turnover figures, or profit and loss details in the accounts limits insight into operational performance and revenue generation. This could be typical for a company that has just commenced trading or is in a preparatory phase. The director's confidence in going concern status further supports optimistic business prospects.

Given the company's small size, low complexity, and IT consultancy focus, the financial structure appears stable but early-stage—akin to a patient showing good initial signs but requiring ongoing monitoring and development to ensure sustained financial health.

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4. Recommendations: Specific Actions to Improve Financial Wellness

1. Develop and Monitor Profitability Metrics:
   As trading activity increases, ensure detailed tracking of revenues, costs, and profit margins. This will reveal the "symptoms" of operational efficiency or areas needing intervention.

2. Maintain Strong Cash Flow Management:
   Continue to build cash reserves and carefully manage payables to avoid liquidity crunches. Healthy cash flow is the lifeblood of any new business.

3. Consider Hiring or Outsourcing Key Roles:
   With zero employees currently, consider investing in skilled personnel or contractors to support growth and operational capacity.

4. Plan for Audit or Review as Company Grows:
   As thresholds for small company exemptions are approached, prepare for the additional compliance and transparency requirements, which also support financial discipline.

5. Diversify Control and Governance:
   While sole ownership enables agility, consider introducing additional directors or advisors to enhance governance and risk oversight as the business scales.

6. Prepare Detailed Budgets and Forecasts:
   Establish financial forecasts and budgets to anticipate capital needs, funding requirements, and growth trajectories, akin to preventive care in financial health.

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