K.T. PATHWAY HOMES LTD

Executive Summary

K.T. PATHWAY HOMES LTD’s financials reveal a weak capital structure with negative net assets and significant liabilities, raising concerns about its ability to meet debt obligations. The company’s limited asset base and negative equity, combined with minimal operational activity, suggest elevated credit risk. Consequently, credit facilities are not recommended at this stage without substantial improvements in financial position and cash flow generation.

K.T. PATHWAY HOMES LTD - Analysis Report

Company Number: 14070278

Analysis Date: 2025-07-29 16:51 UTC

1. Credit Opinion: DECLINE
   K.T. PATHWAY HOMES LTD demonstrates negative net asset value and persistent liabilities exceeding total assets, indicating weak financial health. The company’s current liabilities after one year (£6,010) significantly outweigh current assets (£3,467), suggesting an inability to meet long-term obligations without additional capital. The lack of fixed assets and absence of employees in the latest year also imply limited operational capacity and asset backing. Given these factors, the company does not currently present a strong credit risk profile for lending or extended credit facilities.

2. Financial Strength:
   The company has a negative net asset position of £2,939 as of April 2024, deteriorating from £1,818 the prior year, mainly due to creditors falling due after more than one year (£6,010) not offset by tangible or current assets. The absence of fixed assets limits collateral availability. The shareholder funds are negative, indicating accumulated losses or undercapitalization. The company’s micro-entity size and recent incorporation (2022) suggest limited financial history and scale, increasing risk.

3. Cash Flow Assessment:
   Current assets (£3,467) are insufficient to cover current liabilities falling due within one year (£396) plus long-term creditors (£6,010). Net current assets are positive at £3,071, but total liabilities exceed total assets leading to negative equity. The company’s liquidity position is weak, with minimal working capital and no evidence of cash reserves or cash flow generation capacity. The reduction in employees from 2 to 0 may impact operational cash flow.

4. Monitoring Points:

• Track improvement or further deterioration in net assets and shareholder funds in subsequent filings.
• Monitor changes in creditor levels, especially long-term liabilities.
• Review any capital injections or asset acquisitions that could strengthen the balance sheet.
• Observe operational activity and employee numbers as indicators of business viability.
• Confirm timely filing of accounts and confirmation statements to avoid compliance risk.