KNB SOLUTIONS LIMITED

Executive Summary

KNB Solutions Limited exhibits strong initial financial health with positive working capital and no debt, reflecting a stable liquidity position for a newly incorporated micro-business. While the company's balance sheet is healthy, the limited operational history and scale suggest cautious optimism. Continued focus on cash flow management and profitability tracking will be critical for sustained financial wellness.

KNB SOLUTIONS LIMITED - Analysis Report

Company Number: 15169263

Analysis Date: 2025-07-20 19:06 UTC

Financial Health Assessment for KNB SOLUTIONS LIMITED

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1. Financial Health Score: B

Explanation:
KNB Solutions Limited shows a strong liquidity position and solid equity base for a newly incorporated micro-entity. The company has a healthy working capital surplus, no overdue filings, and a clean legal status. However, as it is in its first full financial year with no detailed profit or loss data and limited operational history, the grade reflects good initial stability but with caution due to limited financial track record and scale.

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2. Key Vital Signs

Metric	Value	Interpretation
Current Assets	£80,964	Good level of liquid and short-term assets
Current Liabilities	£37,369	Moderate short-term obligations
Net Current Assets	£43,595	Positive working capital (current assets exceed liabilities) indicates healthy cash flow and ability to cover short-term debts
Total Assets Less Current Liabilities	£43,595	Strong asset base net of short-term debts
Shareholders’ Funds (Equity)	£43,595	Entirely equity-financed; no debt reported
Account Category	Micro	Simplified reporting, small scale operation
Company Status	Active	Currently operating and compliant
Overdue Filings	No	Up to date on statutory obligations
Number of Employees	1	Very small operational scale
Director Control	Single director with majority ownership	Clear and centralized management

Interpretation:
The company’s "vital signs" indicate a financially sound micro-business. The positive working capital is a key symptom of liquidity health, meaning the company is well-positioned to meet its immediate financial obligations without distress. The shareholders’ funds equal net assets, showing no external borrowings, which reduces financial risk. However, the small scale and no reported profitability data limit definitive conclusions about operational performance.

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3. Diagnosis

KNB Solutions Limited is in a good financial condition for a start-up micro-entity. The balance sheet shows no symptoms of financial distress; in fact, the company exhibits signs of a healthy liquidity position with net current assets well above current liabilities. The absence of debt is a positive indicator, reducing financial pressure.

However, the company is still in an early stage, with only one employee and a single financial year’s data. This means while the financial "vitals" are strong, the underlying business health, including revenue generation, profitability, and long-term sustainability, is not yet fully proven. The company operates in the IT consultancy sector—a field which can offer good growth opportunities but also requires careful cash flow management and ongoing client acquisition.

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4. Recommendations

• Monitor Cash Flow Closely: Maintain the healthy liquidity by regularly tracking cash inflows and outflows. Early-stage businesses benefit from a "healthy cash flow" to avoid liquidity crunches.
• Develop Profitability Metrics: Start capturing and analyzing profit and loss data as soon as possible to detect symptoms of operational efficiency or inefficiency.
• Build Financial Resilience: Consider building a small contingency reserve to buffer against unexpected expenses or delays in client payments.
• Maintain Compliance: Continue timely filing of accounts and confirmation statements to avoid penalties and reputational risk.
• Plan for Growth: As the company grows beyond the micro category, prepare for more detailed financial reporting and possibly external financing.
• Leverage Director Control: With majority control concentrated in one director, ensure robust governance and risk management protocols to safeguard company health.
• Explore Client Diversification: Avoid dependence on a limited client base which can be a symptom of vulnerability in revenue streams.

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