KW INTERIORS (SOUTH WEST & WALES) LTD

Executive Summary

KW Interiors (South West & Wales) Ltd is a small, active private limited company engaged in specialised construction activities. While it currently maintains positive working capital and regulatory compliance, the company’s financial position has weakened notably over the last year, raising concerns about operational sustainability and liquidity. Further detailed investigation into financial performance and operational capacity is recommended before investment consideration.

KW INTERIORS (SOUTH WEST & WALES) LTD - Analysis Report

Company Number: 12739722

Analysis Date: 2025-07-19 12:24 UTC

1. Risk Rating: MEDIUM

Justification: KW Interiors (South West & Wales) Ltd shows a decline in net assets and net current assets from 2024 to 2025, indicating some deterioration in financial position. However, the company maintains positive working capital and solvency with net current assets of £48,487 and net assets of £46,612 as of April 2025. The company is relatively young, with limited fixed assets and a small workforce, which increases operational risks. There are no overdue filings or indications of regulatory non-compliance.

2. Key Concerns:

• Declining Financial Strength: Net assets have dropped by approximately 50% from £93,890 in 2024 to £46,612 in 2025, signaling potential profitability or cash flow challenges.
• Reduced Liquidity: Cash reserves have decreased from £64,940 to £48,429 and trade debtors have fallen significantly, which could reflect reduced sales or collection issues.
• Small Scale and Limited Resources: The company operates with only 2 employees and minimal fixed assets, which may limit operational resilience against market or project risks.

3. Positive Indicators:

• Positive Working Capital: Current assets exceed current liabilities by £48,487, indicating the company can meet short-term obligations.
• No Overdue Filings: The most recent accounts and confirmation statements are filed on time, demonstrating good regulatory compliance.
• Shareholders’ Funds Remain Positive: Despite the decline, shareholders’ equity is still positive, indicating the company is not insolvent.

4. Due Diligence Notes:

• Investigate reasons for the significant decline in net assets and current assets between 2024 and 2025, including profitability and cash flow trends.
• Assess the quality and collectability of trade debtors, given the substantial drop from the previous year.
• Review operational capacity and contracts given the small employee base and limited fixed asset investment.
• Confirm ongoing compliance with tax and social security obligations, especially considering the reduction in taxes and social security creditors.
• Verify the nature and terms of finance leases and hire purchase contracts, including the impact of obligations due after one year.