KOMUNITE LONDON LIMITED

Executive Summary

Komunite London Limited is a small, recently established company with a stable financial position reflected by positive net assets and sufficient cash reserves to cover current liabilities. While the company shows promising liquidity and capitalization for its age, its limited operational history necessitates conditional credit approval with ongoing monitoring of cash flows and business growth metrics. The management team appears competent, but the company’s early stage status means prudent oversight is advised.

KOMUNITE LONDON LIMITED - Analysis Report

Company Number: 15041435

Analysis Date: 2025-07-29 14:55 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Komunite London Limited is a newly incorporated private company with a positive net asset position and manageable current liabilities. The company shows a modest working capital surplus and no audit requirement due to small company status. However, given the company's young age (just over one year) and limited financial history, approval is conditional on continued monitoring of operational cash flows and receivables management as the business scales. The absence of significant fixed assets and reliance on current assets suggests a service-oriented model with lower collateral coverage. Directors appear active with no adverse conduct records, supporting governance credibility.

2. Financial Strength:
   The balance sheet as of 31 August 2024 shows net assets of £25,033 primarily driven by cash balances (£38,539) and low liabilities (£13,506). Shareholders’ funds are healthy relative to liabilities, indicating adequate capitalization at this stage. No long-term debt or fixed asset investments are reported, consistent with a start-up phase and the nature of event and media-related activities. The company meets small account filing criteria and is exempt from audit, which limits detailed financial scrutiny.

3. Cash Flow Assessment:
   The company’s liquidity is currently sound with net current assets of £25,033 and cash reserves covering current liabilities nearly threefold. This cash coverage suggests the company can meet short-term obligations without stress. However, the working capital base is relatively modest, and the business employs only one person, indicating early-stage operations. Monitoring cash generation from operations and timing of payables and receivables will be essential to ensure ongoing liquidity as the company grows.

4. Monitoring Points:

• Track revenue growth and margin development to confirm viability and scalability of the business model.
• Monitor cash flow statements to ensure operational cash inflows improve alongside turnover.
• Watch for any increases in short-term liabilities that might strain liquidity.
• Review future accounts filings for evidence of fixed asset acquisitions or capital injections.
• Keep an eye on management changes or director resignations, especially given the recent departure of one director in January 2024.