Company Number: 14131393

Analysis Date: 2025-07-29 12:25 UTC

Financial Health Assessment of KYATECH LTD

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1. Financial Health Score: D

Explanation:
KYATECH LTD exhibits significant financial distress as evidenced by persistent and increasing net liabilities over the last three financial years. The company’s current liabilities far exceed its current assets, resulting in a negative working capital and net asset position. This financial profile signals critical liquidity problems and an inability to cover short-term obligations, hence a below-average grade.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	2022 (£)	Interpretation
Current Assets	7	151	151	Virtually no liquid resources available
Current Liabilities	18,060	11,078	11,078	Significant short-term debts, increasing
Net Current Assets (Working Capital)	-18,053	-10,927	-10,927	Negative by a large margin—"symptom of distress" indicating cash flow problems
Net Assets (Equity)	-18,053	-10,927	-10,927	Negative shareholders’ funds—company is insolvent on a balance sheet basis
Employee Count	1	1	-	Micro business scale
Account Category	Micro	Micro	Micro	Minimal filing requirements
Industry SIC Code	70229	70229	70229	Management consultancy

Interpretation:
The company has consistently reported net liabilities exceeding £10,000, worsening to over £18,000 in the latest year. This is a serious "vital sign" indicating KYATECH LTD is financially "unwell," with liabilities exceeding its assets and minimal cash or receivables on hand to manage day-to-day operations. The growing short-term creditors and almost nonexistent current assets reveal symptoms of liquidity stress and potential insolvency risk.

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3. Diagnosis

KYATECH LTD is currently in a precarious financial state. The persistent negative net current assets and net liabilities indicate that the company is unable to meet its short-term debts from its available liquid resources. This creates a "cash flow blockage," which is often a critical symptom leading to insolvency or forced restructuring.

The fact that the company remains active and has no overdue filings is positive from a compliance standpoint, but the mounting financial strain suggests the company is likely relying on external financing, director loans, or delayed payments to keep operating.

Given the company’s micro-entity status with only one employee, the scale is small, but the financial "symptoms" could worsen rapidly without intervention. The absence of profit and loss data in the filings limits insight into operational performance, but balance sheet "vital signs" alone point to financial distress.

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4. Prognosis

If current trends continue without corrective action, KYATECH LTD may face increasing difficulty in meeting creditor demands, risking insolvency proceedings or forced liquidation. However, turnaround is possible if the company can inject new capital, reduce liabilities, or improve cash flow through better client payments or cost management.

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5. Recommendations

• Immediate Cash Flow Management:
  Prioritize collecting outstanding receivables, negotiate extended payment terms with suppliers and creditors to ease short-term liquidity pressure.

• Capital Injection:
  Consider equity or director loan infusion to restore positive net assets and working capital.

• Cost Control:
  Review all expenses and scale back non-essential costs. With only one employee, focus on lean operations.

• Financial Reporting & Planning:
  Prepare a detailed cash flow forecast and profit & loss account to identify operational weaknesses and plan for sustainable growth.

• Professional Advice:
  Engage insolvency practitioners or business turnaround specialists early if liquidity issues persist to explore restructuring options.

• Compliance Maintenance:
  Keep filing accounts and confirmation statements on time to maintain good standing with Companies House.

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