KP & SONS GROUP LTD

Executive Summary

KP & SONS GROUP LTD is a micro-entity with a recently incorporated status and a sole director/owner. While it remains solvent with positive net assets, the company’s liquidity position is weak due to current liabilities exceeding current assets. Timely filing compliance and transparent ownership are positives, but the shrinking equity base and negative working capital warrant further financial and operational review before investment consideration.

KP & SONS GROUP LTD - Analysis Report

Company Number: 13827230

Analysis Date: 2025-07-20 12:49 UTC

1. Risk Rating: MEDIUM
   The company shows a small but positive net asset position (£175) at the latest year-end, indicating some solvency. However, the negative net current assets position (£-1,657) and significant increase in current liabilities raise liquidity concerns. The company is very young (incorporated 2022) and small (micro-entity), which limits the financial history and operational track record.

2. Key Concerns:

• Liquidity risk: Current liabilities (£3,502) exceed current assets (£1,845) by a considerable margin, resulting in negative working capital. This could impair the company’s ability to meet short-term obligations without additional funding.
• Declining net assets: Net assets decreased substantially from £2,369 in 2023 to £175 in 2024, suggesting erosion of equity possibly due to losses or increased liabilities.
• Single director and PSC structure: The sole director and 100% PSC is also the principal operator, which may concentrate operational risk and limit governance oversight.

3. Positive Indicators:

• Compliance: The company has filed all required accounts and confirmation statements on time with no overdue filings or penalties.
• Ownership clarity: Ownership and control are transparent with the sole director also being the PSC holding 75-100% shares.
• Growing operations: The company increased average employees from 0 to 1 in the latest year, indicating some operational scaling from inception.

4. Due Diligence Notes:

• Investigate the nature and terms of current liabilities to assess repayment risk and any overdue creditor balances.
• Review profit and loss details (not publicly filed) to understand the cause of the decline in net assets and assess profitability or losses.
• Confirm if there are any related party transactions or director loans that may impact financial stability.
• Understand the business model for the two SIC codes (hairdressing/beauty treatment and taxi operation) and how these operate together operationally and financially.
• Evaluate any cash flow forecasts or bank facilities that support short-term liquidity needs.