KNIGHT AUTOMOTIVE LTD

Executive Summary

Knight Automotive Ltd is a very small, micro-entity operating in motor vehicle maintenance with a currently modest but improving financial position. While the company has shown recovery from negative working capital, the limited scale and minimal financial buffers pose a medium risk to solvency and liquidity. Compliance with filing requirements and sole director control are positive factors, but further investigation into cash flows and operational sustainability is recommended.

KNIGHT AUTOMOTIVE LTD - Analysis Report

Company Number: 13160205

Analysis Date: 2025-07-20 18:45 UTC

1. Risk Rating: MEDIUM
   The company shows improvement in net current assets and shareholders’ funds over the last two years, moving from a negative position in 2023 to a positive one in 2024. However, the absolute values remain very modest, reflecting limited financial buffer. The micro-entity status and minimal share capital also indicate a small scale operation with potentially limited resources to absorb shocks.

2. Key Concerns:

• Limited Financial Scale and Buffers: Current assets are only £4,704 against current liabilities of £2,941, resulting in net current assets of £1,763. This small working capital base may constrain operational flexibility and ability to handle unexpected expenses.
• Negative Working Capital in Prior Year: The company had net current liabilities of £3,045 in the previous year, indicating a turnaround but highlighting prior liquidity stress.
• Lack of Audit and Minimal Reporting: Being a micro-entity exempt from audit and with minimal disclosure limits transparency and may mask underlying risks or operational challenges.

3. Positive Indicators:

• Improved Financial Position: The move from negative net assets and working capital in 2023 to a positive position in 2024 is a positive sign of financial recovery or improved management.
• No Overdue Filings: The company is up to date with both accounts and confirmation statement filings, indicating compliance with regulatory requirements.
• Single Shareholder Control: The sole director and 100% owner being the same person may enable swift decision-making and aligns control with accountability.

4. Due Diligence Notes:

• Investigate the nature of current liabilities and whether any are overdue or dependent on external financing.
• Review cash flow statements and management accounts (if available) to assess ongoing liquidity and operational cash generation.
• Confirm the reasons behind the prior year’s negative net current assets and how the improvement was achieved.
• Understand the business model and revenue streams given the very small asset base and no employees reported in the last year.
• Verify the director’s background and capacity to manage the company effectively given sole control.