Company Number: 12696030

Analysis Date: 2025-07-29 14:43 UTC

1. Risk Rating: LOW
   KN GROUP LIMITED is rated low risk primarily because it is currently dormant with minimal financial activity, and there are no overdue filings or compliance issues. The company holds only nominal share capital (£100) and has no audit requirement due to its small size and dormant status.

2. Key Concerns:

• Negative Net Current Assets: The company consistently shows net current liabilities of £200, indicating current liabilities (£300) exceed current assets (£100), which could present liquidity challenges if the company became active.
• Loans from Related Parties: The £300 creditor balance represents interest-free, unsecured loans from related parties repayable on demand, which could imply dependency on these loans for solvency if operational.
• Dormant Status with Minimal Activity: Being dormant means no trading or revenue generation is occurring, so operational sustainability is untested and would require review if the company plans to activate operations.

3. Positive Indicators:

• No Filing or Compliance Issues: All statutory accounts and confirmation statements are filed on time, indicating good regulatory compliance.
• Stable Ownership and Management: Directors and persons with significant control have remained consistent since incorporation with no adverse records noted.
• Exemption from Audit: The company qualifies for audit exemption under small company criteria, reducing administrative and financial burden.

4. Due Diligence Notes:

• Confirm the nature and terms of the related party loans and assess any risks related to their repayment or potential calls for repayment.
• Investigate the company’s plans regarding its dormant status and whether there is intent to commence trading, which would necessitate a review of liquidity and operational capacity.
• Review any historical or potential contingencies not disclosed in the accounts since limited disclosures are available for dormant companies.