KRAKEN CUSTOMS LTD

Executive Summary

Kraken Customs Ltd appears solvent with positive net current assets and increased cash reserves, supported by timely filings and no audit exemptions. However, a significant rise in current liabilities and concentrated ownership introduce moderate risk factors. Further financial detail and clarification of creditor composition are necessary to fully evaluate liquidity and operational sustainability.

KRAKEN CUSTOMS LTD - Analysis Report

Company Number: SC694651

Analysis Date: 2025-07-29 13:14 UTC

1. Risk Rating: MEDIUM
   The company shows positive net current assets and shareholders' funds indicating solvency; however, a sharp increase in current liabilities and concentration of control warrant caution.

2. Key Concerns:

• Current liabilities have more than tripled from £10,393 (2023) to £33,403 (2024), which could pressure liquidity despite increased cash holdings.
• The company has minimal share capital (£2) and a highly concentrated ownership structure with a single significant controller holding 25-50% shares and voting rights, which could pose governance risks.
• The absence of an income statement and audit limits visibility into profitability and operational performance, making it difficult to assess sustainability fully.

3. Positive Indicators:

• Cash balances have doubled from £24,344 to £49,724, providing a healthy cash buffer to meet short-term obligations.
• Net current assets remain positive (£16,560), suggesting working capital is sufficient to cover immediate liabilities.
• The company is up to date with all statutory filings and accounts, indicating regulatory compliance and good governance in terms of administrative obligations.
• The directors affirm going concern status, reflecting management confidence in operational continuity.

4. Due Diligence Notes:

• Investigate the nature and cause of the threefold increase in current liabilities, particularly the large jump in "other creditors" from £6,842 to £29,510, to understand short-term obligations and payment terms.
• Request detailed profitability and cash flow statements to assess operational stability and earnings quality.
• Review any related-party transactions or director loans given the concentrated control by the Sloan family members.
• Confirm whether there are any contingent liabilities or off-balance-sheet risks not disclosed in the filings.
• Assess the company’s customer base and revenue streams given the SIC codes indicating both vehicle rental/leasing and manufacturing activity, which may imply a diversified operational model.