KOGGALA HOLDINGS LTD

Executive Summary

Koggala Holdings Ltd is a start-up holding company with weak financial metrics marked by negative net assets and significant working capital deficits. The company currently lacks operating cash flow and relies heavily on shareholder support to meet obligations. Due to liquidity constraints and insufficient financial strength, credit facilities are not recommended at this stage without substantial improvement in the company’s financial position.

KOGGALA HOLDINGS LTD - Analysis Report

Company Number: 14780651

Analysis Date: 2025-07-29 21:13 UTC

1. Credit Opinion: DECLINE

Koggala Holdings Ltd is a newly incorporated private limited company (April 2023) engaged as a holding company. The latest financials for the year ended April 2024 show a net liabilities position with negative net assets (£-1,394) and negative working capital (£-126,956). Current liabilities (£134,350) significantly exceed current assets (£7,394), indicating a liquidity shortfall and inability to meet short-term obligations from operating resources. There is no indication of operating revenue or profit generation to support debt servicing. The company’s balance sheet is reliant on a single shareholder director who has provided equity of only £100 and holds investments classified under fixed assets (£125,562). The director states the going concern assumption is supported by shareholder backing, but there is no evidence of cash inflows or business activity generating operating cash flow. Given the negative net assets, substantial current liabilities, and lack of operating cash flow, the company currently lacks financial strength and ability to repay debt or honor commercial commitments.

2. Financial Strength:

• Fixed assets consist solely of investments (£125,562), which are likely subsidiary holdings, but there is no further detail on their value or profitability.
• Current assets are minimal (£7,394) and predominantly cash (£5,325) and debtors (£2,069).
• Current liabilities are very high at £134,350, creating a large working capital deficit (£-126,956).
• Net liabilities and negative shareholders’ funds (£-1,394 and £-1,494 respectively) reflect erosion of equity.
• The company holds no retained earnings and minimal share capital (£100).
• The balance sheet reflects a start-up phase with heavy reliance on external or shareholder funding to support liabilities.

3. Cash Flow Assessment:

• Cash balances are low (£5,325) compared to current liabilities, indicating tight liquidity.
• Negative net current assets suggest insufficient working capital to cover short-term debts.
• No profit and loss statement was filed, and the financials indicate no operating income or cash flow generation.
• The company depends on shareholder support to maintain going concern.
• Without operational cash inflows or external financing, the company’s ability to meet payment obligations is doubtful.

4. Monitoring Points:

• Monitor shareholder equity injections or external financing to improve liquidity.
• Review subsidiary company performance and cash flow contributions to parent company.
• Track changes in current liabilities and any new trade or financial obligations.
• Watch for filing of subsequent accounts to assess financial trajectory and operational activity.
• Evaluate director’s ongoing support and any changes in control or business strategy.