K&T BUILDING SERVICES LTD

Executive Summary

K&T Building Services Ltd is a recently established small private company operating in building completion and finishing. Its first-year financials indicate a positive but modest equity and liquidity position with good compliance. While the short operating history and limited capital base warrant monitoring, there are currently no significant red flags indicating immediate solvency or governance concerns.

K&T BUILDING SERVICES LTD - Analysis Report

Company Number: 14719378

Analysis Date: 2025-07-29 20:34 UTC

1. Risk Rating: LOW

The company is newly incorporated (March 2023) and has filed timely unaudited abridged accounts for its first financial year ending March 2024. It shows positive net current assets and net assets, albeit modest, and no overdue filings or compliance issues are noted. Operational scale is very small with just two employees and limited fixed assets.

2. Key Concerns:

• Limited operating history: Being less than two years old, the company’s business model and cash flow stability are unproven.
• Modest capital base: Shareholders’ funds of £9,753 and net assets of similar value indicate a narrow equity buffer against unexpected losses.
• Working capital tightness: While net current assets are positive (£8,908), current liabilities (£69,703) are close to current assets, suggesting limited liquidity headroom.

3. Positive Indicators:

• Timely and compliant filings: No overdue accounts or confirmation statements, indicating good governance.
• Positive net assets and working capital: The company maintains a positive equity position and modest liquidity, reducing immediate solvency risks.
• Clear ownership and management: Directors and PSCs are identified with no disqualifications or governance red flags.

4. Due Diligence Notes:

• Cash flow analysis: Obtain detailed cash flow statements and projections to confirm liquidity sufficiency beyond balance sheet snapshots.
• Revenue and profit trends: Review income statements to understand profitability and sustainability of earnings.
• Contracts and customer base: Verify the stability and diversification of client relationships in the building completion sector (SIC 43390).
• Related party transactions: Investigate any financial dealings between the two directors/shareholders and the company to assess potential conflicts.
• Growth plans and capital needs: Understand future funding requirements given the small equity base and initial scale of operations.