KX ASSET MANAGEMENT LTD

Executive Summary

KX ASSET MANAGEMENT LTD currently presents a high risk profile primarily due to liquidity shortfalls and declining net asset value, compounded by minimal operational scale. While regulatory compliance and stable shareholder governance are positives, potential investors should conduct thorough due diligence on the company’s cash flow, business viability, and management background before considering exposure. The available data suggests caution given the financial constraints and operational uncertainties.

KX ASSET MANAGEMENT LTD - Analysis Report

Company Number: 14356017

Analysis Date: 2025-07-29 12:18 UTC

1. Risk Rating: HIGH
   KX ASSET MANAGEMENT LTD exhibits significant solvency and liquidity concerns based on the latest available financial data. The company’s current liabilities substantially exceed its current assets, indicating potential difficulties in meeting short-term obligations. Additionally, the absence of employees and minimal operational scale raise questions about ongoing business sustainability.

2. Key Concerns:

• Negative Working Capital: The reported current assets (£2,239) are markedly lower than current liabilities (£30,600) as of 30 September 2024, signaling liquidity stress.
• Declining Net Assets: Net assets decreased from £58,888 in 2023 to £49,639 in 2024, suggesting erosion of capital and potential financial deterioration.
• Minimal Operational Activity: The company has no employees and limited financial data indicative of business operations, raising concerns about its operational viability and revenue generation.

3. Positive Indicators:

• Compliance with Filing Requirements: The company is up to date with its annual accounts and confirmation statement filings, reflecting good regulatory compliance.
• Stable Shareholder Structure: Control is well-distributed among three directors/PSC holders with clear ownership and governance rights.
• Exemption from Audit: As a micro-entity, the company benefits from simplified reporting requirements, reducing administrative burdens.

4. Due Diligence Notes:

• Examine Detailed Cash Flow: Investigate cash inflows and outflows to understand liquidity management and whether the company can sustain operations or service liabilities.
• Assess Business Model and Revenue Streams: Clarify the nature of fund management activities and whether the company is generating or planning revenue to support growth.
• Review Director and PSC Backgrounds: Confirm the track records and financial standing of directors and persons with significant control to evaluate governance quality.
• Investigate Reasons for Asset and Liability Fluctuations: Analyze causes behind the sharp reduction in current assets and liabilities to detect unusual transactions or risks.