KV PROPERTY RENTALS LTD

Executive Summary

KV PROPERTY RENTALS LTD is a recently formed micro-entity exhibiting negative net assets and reliance on significant long-term debt, indicating weak financial strength. The company’s current financial position raises concerns about its ability to service debt and sustain operations without additional capital support. Credit approval is not recommended at this stage without evidence of improving cash flow and equity.

KV PROPERTY RENTALS LTD - Analysis Report

Company Number: 15113821

Analysis Date: 2025-07-19 12:56 UTC

1. Credit Opinion: DECLINE. KV PROPERTY RENTALS LTD is a newly incorporated micro-entity (incorporated September 2023) with limited financial history. The latest accounts as of 30 September 2024 reveal net liabilities and negative shareholders’ funds (£-7,337), indicating the company is currently insolvent on a balance sheet basis. The significant long-term liabilities (£308,214) considerably exceed current assets and net assets, raising concerns about debt servicing capacity. Without positive trading results, this financial position suggests the company is not yet generating sufficient cash flow to meet obligations, leading to elevated credit risk.

2. Financial Strength: The balance sheet shows fixed assets of £286,768 primarily representing property holdings, and current assets of only £16,812. Despite net current assets of £14,799, total creditors due after one year amount to £308,214, resulting in net liabilities. The negative net assets and shareholders’ funds indicate an equity deficit. This capital structure is fragile, with the company relying heavily on external financing. The absence of retained earnings or profit reserves further weakens financial resilience.

3. Cash Flow Assessment: Current liabilities reported within one year are minimal (£2,013), suggesting short-term liquidity may be manageable. However, the large long-term creditor balance suggests significant scheduled repayments or obligations that may strain future cash flows. The company reports no employees, implying low operating costs, but with no P&L disclosed, we cannot confirm profitability or cash generation. The small current asset base limits working capital buffer, increasing vulnerability to cash flow disruptions.

4. Monitoring Points:

• Future trading performance and profitability to assess capacity to reduce net liabilities.
• Changes in debt structure, particularly long-term creditor balances.
• Timely filing of accounts and confirmation statements to ensure transparency.
• Any additional capital injections or shareholder loans improving equity position.
• Cash flow statements when available, to monitor liquidity trends.