Company Number: 13554054

Analysis Date: 2025-07-20 18:27 UTC

1. Credit Opinion: DECLINE
   KOI FOND LTD shows a weak financial position with net liabilities reflected in the latest micro-entity accounts. The company has a negative net asset position of £2,397 at 31 August 2024, unchanged since 2023, indicating accumulated losses or capital deficiencies. Despite current assets exceeding current liabilities by £562, the large creditor balances due after one year (£3,802 in 2024) create a significant long-term solvency risk. The company’s small scale, reflected by a single employee and micro-entity filing status, limits operational resilience. The director is the sole significant controller, which concentrates risk and limits external oversight. These factors collectively reduce confidence in the company’s ability to service incremental debt or meet commercial payment obligations reliably.

2. Financial Strength:

• Fixed assets are minimal (£843 in 2024) and slightly declining, showing limited capital investment.
• Current assets have improved modestly to £1,249 but remain small relative to liabilities.
• Creditors due within one year are low (£687), but long-term creditors remain substantial (£3,802), dragging net assets into negative territory (-£2,397).
• Shareholders’ funds correspond with net assets and have not improved over three years, signaling no capital injections or retained earnings accumulation.
• The balance sheet reflects a leveraged and potentially distressed financial structure.

3. Cash Flow Assessment:

• The net current assets position (£562) suggests some short-term liquidity to cover immediate obligations, but working capital is tight.
• The company’s reliance on long-term creditors for financing raises concerns about refinancing risk and cash flow sustainability.
• No profit or loss data is provided, but unchanged net assets suggest limited or negative profitability, which can impair cash flow generation.
• With only one employee and micro-entity scale, operational cash flows are likely minimal and vulnerable to disruption.

4. Monitoring Points:

• Watch for improvements or deterioration in net assets and shareholders’ funds, indicating changes in profitability or capital structure.
• Monitor the level and terms of long-term creditors to assess refinancing risk and debt servicing capacity.
• Track timely filing of accounts and confirmation statements as indicators of management’s compliance and governance.
• Review any changes in director or significant control that might affect company strategy or risk profile.
• Observe trading performance and cash flow statements when available to assess operating efficiency and liquidity trends.