Company Number: 14655269

Analysis Date: 2025-07-29 14:13 UTC

1. Risk Rating: LOW
   KW Collective Ltd demonstrates a strong solvency position with net assets of £8,037 as at the latest accounting date, positive net current assets, and no current liabilities reported. The company is active, compliant with filing deadlines, and operating within the micro-entity reporting framework, which reduces complexity and risk.

2. Key Concerns:

• Significant reduction in net assets and current assets from £28,879 and £43,090 in 2024 to £8,037 and £7,734 respectively in 2025, suggesting a material decline in liquidity and working capital that warrants explanation.
• The company is very early in its life cycle (incorporated 2023) with limited financial history, which limits the ability to assess operational stability and long-term viability.
• Director advances and repayments recorded indicate some reliance on director funding arrangements; although repaid, this requires monitoring for potential cash flow dependencies.

3. Positive Indicators:

• No current liabilities reported as at the latest year-end, indicating an absence of short-term debt pressure.
• Compliance with all statutory filing requirements and no overdue accounts or confirmation statements.
• Sole director and 100% shareholder control by an individual with a clear occupation (marketing consultant), which may provide focused management and decision-making.

4. Due Diligence Notes:

• Investigate the reasons for the substantial decrease in current assets and net assets between 2024 and 2025, including any one-off transactions or changes in business model.
• Review cash flow statements and management accounts (if available) to assess ongoing liquidity and working capital management.
• Clarify the nature of director advances and any subsequent funding arrangements to understand potential financial dependencies.
• Understand the revenue model and client base given the SIC code for “Other business support service activities not elsewhere classified” to assess sustainability and growth prospects.
• Confirm there are no contingent liabilities or off-balance sheet commitments beyond those disclosed.