KPULSE LTD

Executive Summary

KPULSE LTD is currently experiencing financial distress marked by negative net assets and a significant working capital deficit, posing risks to its ongoing viability. Immediate actions such as capital injection, cost management, and creditor negotiations are critical to restore financial health and ensure sustainable operations.

KPULSE LTD - Analysis Report

Company Number: 14329714

Analysis Date: 2025-07-20 15:46 UTC

Financial Health Assessment Report for KPULSE LTD

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1. Financial Health Score: D

Explanation:
The overall financial health of KPULSE LTD is currently weak. The company shows persistent negative net assets and negative working capital, indicating financial distress symptoms similar to a patient with chronic malnutrition — the company is not generating sufficient resources to cover its short-term obligations and has a deficit in its equity base. Immediate corrective action is necessary to restore financial vitality.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	2,929	Very low investment in long-term assets; reflects minimal capital tied up in property or equipment.
Current Assets	5,166	Low level of liquid assets and receivables; limited buffer to meet short-term obligations.
Current Liabilities	33,904	High short-term debts due within one year, significantly outweighing current assets.
Net Current Assets	-28,738	Negative working capital — a critical symptom of liquidity stress; the company cannot cover immediate debts from liquid assets.
Total Assets less Current Liabilities	-25,809	Indicates overall asset base cannot cover short-term debts, signaling insolvency risk if unresolved.
Net Assets (Shareholders’ Funds)	-26,529	Negative equity position; shareholders’ funds are in deficit, indicating accumulated losses or undercapitalization.
Employee Count	1	Micro entity with minimal operational scale; limited human resources.

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3. Diagnosis

KPULSE LTD is in a fragile financial state characterized by:

• Persistent Negative Equity: The company’s net liabilities position (approx. £26.5k deficit) indicates it owes more than it owns. This is akin to a patient with a prolonged deficiency in vital nutrients — the business is structurally undercapitalized.

• Severe Liquidity Strain: The negative net current assets (working capital deficit of ~£28.7k) suggest the company struggles to meet short-term debts. This is a "symptom of distress" that could lead to insolvency if not addressed, similar to a patient with dangerously low blood pressure indicating poor circulation.

• Limited Asset Base: Minimal fixed assets and current assets point to a lean operation but also limit collateral for borrowing or investment.

• Micro Entity Scale: Operating with just one employee and filing under micro company accounts, KPULSE LTD is in an early or highly constrained stage of business development, which increases vulnerability to financial shocks.

• No Audit Requirement: While this reduces compliance costs, it also means financial controls may be less rigorously scrutinized, potentially delaying the detection of deeper issues.

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4. Recommendations

To improve financial wellness and stabilize KPULSE LTD, the following steps are advised:

1. Capital Injection:

   • Infuse additional equity or secure shareholder loans to restore positive net assets. Think of this as providing essential vitamins to a weakened patient.

2. Cost Control and Cash Flow Management:

   • Tighten operational expenses and monitor cash inflows/outflows to improve liquidity. This is akin to stabilizing vital signs through careful management.

3. Debt Restructuring:

   • Engage creditors to negotiate extended payment terms or partial debt forgiveness to reduce current liabilities pressure.

4. Revenue Enhancement:

   • Explore opportunities to increase sales or diversify services within the "other human health activities" sector to boost current assets and improve cash reserves.

5. Regular Financial Monitoring:

   • Establish monthly financial reviews to detect early warning signs and respond quickly, similar to routine health check-ups.

6. Consider Professional Advice:

   • Consult with financial advisors or turnaround specialists to guide restructuring and operational improvements.

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