KINGSVIEW INTERACTIVE LTD

Executive Summary

Kingsview Interactive Ltd is displaying early signs of financial distress with negative net assets and working capital issues, reflecting cash flow challenges. Immediate actions to improve liquidity, control costs, and possibly secure additional funding are essential to restore financial health and avoid further deterioration. With focused management and financial discipline, the company can stabilize and support sustainable growth.

KINGSVIEW INTERACTIVE LTD - Analysis Report

Company Number: 12909231

Analysis Date: 2025-07-29 19:51 UTC

Financial Health Assessment for Kingsview Interactive Ltd

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1. Financial Health Score: D

Explanation:
Kingsview Interactive Ltd is currently exhibiting signs of financial distress, reflected by negative net assets and net current liabilities in the latest financial year. Compared to the previous years when the company had positive net assets, this deterioration signals weakening financial vitality. The company’s micro-entity status suggests modest scale; however, the recent financials indicate challenges in maintaining liquidity and solvency. Hence, a "D" grade reflects a concerning but not yet critical financial health status.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	367	Minimal investment in long-term assets; stable but very low.
Current Assets	10,348	Available short-term resources; significantly decreased from prior years.
Current Liabilities	11,252	Short-term debts due; slightly decreased but still higher than current assets.
Net Current Assets (Working Capital)	-904	Negative working capital indicates cash flow constraints.
Net Assets (Shareholders’ Funds)	-537	Negative equity suggests liabilities exceed assets; warning sign.
Average Number of Employees	2	Small workforce consistent with micro-entity status.

Interpretation of Vital Signs:

• The negative net current assets ("working capital") resemble symptoms of cash flow distress; the company’s short-term liabilities surpass its available short-term assets.
• The negative net assets position signals the company owes more than it owns overall, akin to a patient with compromised organ function — the company’s financial “organs” are under strain.
• The reduction in current assets by more than 50% compared to 2023 suggests the company is burning through its liquid resources, which is a critical symptom of financial stress.
• Fixed assets are minimal and declining, showing no recent investments in long-term productive capacity.
• Despite these concerns, the company remains active and not in liquidation or administration, indicating some operational viability.

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3. Diagnosis: Financial Condition Assessment

Kingsview Interactive Ltd is currently facing early to moderate financial distress, primarily due to a negative working capital position and negative net equity. These symptoms suggest strains in liquidity management and potential difficulties in meeting short-term obligations without additional financing or operational improvements.

The deterioration from a positive net assets position in prior years to a negative position indicates either accumulated losses or increased liabilities. The company’s small scale and micro-entity filing status limit its financial flexibility, making it vulnerable to cash flow shocks.

The reduced workforce aligns with cost-cutting efforts, possibly in response to financial strain. The company’s core business in software development can have variable cash flow profiles depending on project cycles and client payments, possibly contributing to liquidity fluctuations.

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4. Recommendations: Path to Financial Wellness

• Improve Cash Flow Management:
  Conduct a detailed cash flow forecast to identify timing gaps in receipts vs. payments. Prioritize collection of receivables and negotiate extended payment terms with creditors to relieve short-term cash pressure.

• Cost Control and Efficiency:
  Review all operating expenses and reduce non-essential costs. The reduction in staff from 3 to 2 is a good start; further efficiency measures may be needed without compromising product delivery.

• Revenue Growth Initiatives:
  Explore new client acquisition and upselling opportunities in the software development space. Consider strategic partnerships or niche markets to stabilize revenue streams.

• Capital Injection or Financing:
  To restore positive net assets, consider raising additional equity or secure short-term financing. This injection would act as a "financial transfusion" to stabilize the company’s balance sheet.

• Regular Financial Monitoring:
  Implement monthly financial reviews focusing on liquidity ratios and working capital trends. Early detection of worsening symptoms can prompt timely corrective action.

• Engage Professional Advice:
  Seek expert advice for restructuring if necessary, including potential creditor negotiations or grant applications to support cash flow.

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