KPM PROJECTS LTD

Executive Summary

KPM Projects Ltd demonstrates weak financial standing with negative equity and severe liquidity constraints, posing a high credit risk. The company’s cash resources are insufficient to cover current liabilities, and no evidence suggests improving profitability or cash flow. Declining creditworthiness warrants a decline decision unless significant financial restructuring occurs.

KPM PROJECTS LTD - Analysis Report

Company Number: SC738060

Analysis Date: 2025-07-20 11:02 UTC

1. Credit Opinion: DECLINE
   KPM Projects Ltd exhibits significant financial weaknesses that undermine its ability to meet debt obligations. The company has persistently negative shareholders' funds and net current liabilities exceeding £38,000, indicating a weak capital structure and poor liquidity. The absence of employees and minimal cash reserves further question operational viability and cash flow generation. Without evidence of profitability or a turnaround plan, the credit risk is high.

2. Financial Strength:
   The balance sheet shows total assets consist mainly of a fixed asset investment valued at £37,108, with current liabilities of £41,424 resulting in net current liabilities of £38,948 as of June 2024. Shareholders' funds are negative at £1,840, deteriorating slightly from the prior year. The company has no retained earnings and relies on a single investment asset, offering little financial cushion. The negative net asset position and ongoing losses reflected in retained earnings illustrate weak financial health.

3. Cash Flow Assessment:
   Cash on hand is minimal (£2,476) and insufficient to cover short-term liabilities (£41,424), leading to a substantial working capital deficit. The company has no employees and presumably limited operational activity. The lack of positive cash flow generation or liquidity buffers indicates poor cash flow management and an inability to meet short-term commitments independently.

4. Monitoring Points:

• Regular review of cash flow statements and liquidity ratios to detect further deterioration.
• Closely monitor any changes in current liabilities, especially creditor terms and overdue balances.
• Assess any strategic plans or capital injections that could improve the capital structure or liquidity.
• Watch for filing of full accounts including profit and loss data to evaluate operational performance trends.