KVV10001 LIMITED

Executive Summary

KVV10001 LIMITED faces significant solvency and liquidity risks, evidenced by persistent negative net assets and working capital deficits over multiple years. While the company remains compliant with filing requirements and active, its minimal equity base and operational scale raise concerns regarding financial sustainability. Further due diligence should focus on the composition of liabilities, cash flow adequacy, and business viability.

KVV10001 LIMITED - Analysis Report

Company Number: 12413117

Analysis Date: 2025-07-20 13:13 UTC

1. Risk Rating: HIGH
   The company exhibits persistent net liabilities and negative net current assets over multiple years, indicating ongoing solvency challenges. The micro-entity status and minimal share capital further constrain financial resilience.

2. Key Concerns:

• Negative Net Assets and Working Capital: From 2020 to 2024, net liabilities have increased from approximately £10,254 to £13,723, with net current liabilities around £14,000, signaling inability to cover short-term obligations from current assets.
• Lack of Equity Investment: Share capital remains nominal (£1.00), with no evidence of fresh equity injections to offset losses or improve liquidity.
• Limited Operational Scale: One employee (the director) and no significant fixed assets or operational scale raise questions on sustainable business operations and revenue generation.

3. Positive Indicators:

• Compliance with Filing Requirements: Accounts and confirmation statements are filed on time, indicating regulatory compliance and governance attention.
• Active Status and No Liquidation: The company remains active without formal insolvency proceedings, suggesting current operations continue despite financial strain.
• Micro-Entity Reporting: Use of micro-entity provisions reduces administrative burden, appropriate for current scale.

4. Due Diligence Notes:

• Investigate the nature and source of current liabilities, especially the recurring high level relative to assets.
• Review cash flow statements (if available) to assess liquidity trends and ability to meet short-term payments.
• Understand the business model and revenue streams given the SIC code "Other service activities not elsewhere classified" and minimal staffing.
• Clarify whether the director is providing financial support or guarantees to sustain operations.
• Confirm absence of any director disqualification or regulatory actions beyond publicly available data.