KNOOPS (MB) LTD

Executive Summary

KNOOPS (MB) LTD presents a high-risk profile due to substantial accumulated losses, negative net assets, and severe liquidity constraints evidenced by low cash balances and significant current liabilities owed to group entities. While regulatory compliance appears satisfactory and the company holds tangible assets, the financial structure relies heavily on intercompany funding. Close examination of group financing arrangements and operational cash flows is essential to assess viability and investment risk.

KNOOPS (MB) LTD - Analysis Report

Company Number: 13292622

Analysis Date: 2025-07-20 19:13 UTC

1. Risk Rating: HIGH
   The company exhibits a significant net liability position and persistent negative shareholders’ funds, indicating solvency concerns. Current liabilities substantially exceed current assets, signaling liquidity difficulties. The going concern statement is reliant on management assumptions without audit verification, increasing risk.

2. Key Concerns:

• Negative net assets of approximately £49,000 and shareholders’ deficit, reflecting accumulated losses and potential insolvency risk.
• Net current liabilities of about £69,000, with cash reserves critically low at £93, implying limited ability to meet short-term obligations.
• Substantial amounts owed to group undertakings (£71,944) as current liabilities, suggesting reliance on intercompany financing which may not be sustainable.

3. Positive Indicators:

• Company status is active with no overdue filings, indicating compliance with regulatory requirements.
• Recent appointment of a second director may strengthen governance and operational oversight.
• Tangible fixed assets of £20,147 represent a modest asset base that could provide some value in liquidation or restructuring scenarios.

4. Due Diligence Notes:

• Investigate the nature and terms of the intercompany balances classified as short-term creditors to assess repayment risk and impact on liquidity.
• Review management's cash flow forecasts underlying the going concern assertion to test realism and identify funding needs.
• Obtain information on operational performance, turnover, and profitability trends since incorporation to evaluate business sustainability and recovery prospects.
• Confirm absence of any director disqualifications, legal disputes, or contingent liabilities not disclosed in the accounts.