KNOVEL HORIZONS LTD

Executive Summary

Knovel Horizons Ltd is a micro-entity with extremely limited financial resources, minimal working capital, and no fixed assets, resulting in a very weak financial position. The company’s current scale and financials do not support credit extension, and governance changes add uncertainty. It is recommended to decline credit at this stage but monitor future filings for any material financial improvements.

KNOVEL HORIZONS LTD - Analysis Report

Company Number: SC733027

Analysis Date: 2025-07-29 14:15 UTC

1. Credit Opinion: DECLINE
   Knovel Horizons Ltd is a very small micro-entity with minimal net assets (£100) and no fixed assets. The company's financial position is extremely thin, indicating limited buffer to absorb any operational shocks or support debt servicing. The consistently low net current assets over the last two years and negligible equity suggest very limited financial strength or capital investment. Additionally, the company has only one employee and limited current assets barely exceeding current liabilities, which is insufficient for supporting additional credit risk. There is no sign of profitability or cash flow generation; the absence of detailed profit and loss data further clouds the assessment. The recent resignation of the sole director and corporate secretary may also raise governance concerns. Overall, the company’s financial profile and operational scale do not support extending credit at this time.

2. Financial Strength:
   The balance sheet shows total net assets of £100 for the last three years, all tied up in current assets, no fixed assets, and current liabilities nearly equal to current assets. The company maintains a positive but negligible working capital of £100, indicating no capacity to fund growth or meet unexpected demands. Shareholders funds remain unchanged and minimal, reflecting no retained earnings or capital injections. This stagnant and minimal equity base signifies a weak financial foundation.

3. Cash Flow Assessment:
   Current assets of approximately £5,000 against current liabilities of around £4,900 result in a very tight liquidity position. The company’s ability to generate liquid cash flows to meet short-term obligations is limited. Given the micro-entity scale and lack of fixed assets or reserves, there is little flexibility to manage cash flow fluctuations. The single employee structure also implies limited operational scale and cash flow generation.

4. Monitoring Points:

• Monitor any changes in director appointments and corporate governance stability.
• Track improvements in net current assets and shareholder equity to assess capital strengthening.
• Watch for filing of detailed profit and loss accounts to evaluate revenue and profitability trends.
• Review any changes in working capital management and liquidity positions on subsequent filings.
• Observe business development indicators given the micro-entity size and thin financial buffers.