K-TECH IT CONSULTING LTD

Executive Summary

K-TECH IT CONSULTING LTD demonstrates a positive but modest financial position with adequate working capital and no long-term debt. Despite a reduction in net assets, the company’s cash flow appears sufficient to meet current liabilities. Conditional credit approval is recommended with close monitoring of liquidity and profitability indicators to mitigate early-stage business risks.

K-TECH IT CONSULTING LTD - Analysis Report

Company Number: 14106110

Analysis Date: 2025-07-29 14:57 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   K-TECH IT CONSULTING LTD is a micro-entity in the business and domestic software development sector, active since 2022. The company shows positive net current assets, indicating working capital sufficiency, but the declining net assets from £59,403 in 2024 to £23,820 in 2025 raises caution. Given the early stage of the business and limited fixed assets, credit facilities can be approved conditionally, subject to monitoring of cash flow and profitability trends.

2. Financial Strength:
   The balance sheet reveals no long-term liabilities, and net assets remain positive at £23,820 as of 31 May 2025. Current assets increased to £189,916, mainly cash or receivables, but current liabilities also grew to £166,096, squeezing net current assets to £23,820. The equity base is modest, reflecting a small scale operation with two employees and limited fixed assets (£0 in 2025). The decline in net assets year-on-year suggests profitability or retention of earnings may be under pressure.

3. Cash Flow Assessment:
   Working capital is positive but reduced compared to the prior year (£59,117 in 2024 vs £23,820 in 2025), indicating tighter liquidity. The company’s ability to meet short-term liabilities is adequate but narrowing. There is no indication of long-term debt, which reduces financial risk, but cash flow management should be closely watched as the business scales. The micro-entity status limits detailed disclosure, so further insights into operating cash flow would be beneficial.

4. Monitoring Points:

• Track net current assets and liquidity ratios quarterly to ensure the company can service short-term obligations.
• Monitor profitability trends and reserves to assess sustainability and growth potential.
• Review director and shareholder changes or related party transactions given control is split evenly between two directors.
• Watch for any increase in liabilities or delayed supplier payments that could signal cash flow stress.
• Confirm timely filing of accounts and confirmation statements to avoid regulatory penalties.