KYOGII LIMITED

Executive Summary

Kyogii Limited’s financials indicate a steep decline in liquidity and net assets in the latest reported year, raising concerns about its ability to service debt and meet obligations. The company’s negative working capital and shrinking equity suggest weakened creditworthiness. Without evidence of a turnaround or capital support, extending credit is not advisable at this stage.

KYOGII LIMITED - Analysis Report

Company Number: 12433370

Analysis Date: 2025-07-29 14:18 UTC

1. Credit Opinion: DECLINE
   Kyogii Limited exhibits a marked deterioration in financial condition over recent years, culminating in a negative working capital position and a sharp decline in net assets in the latest fiscal year. The micro entity’s inability to maintain positive net current assets in 2025 (£-353) after strong liquidity in prior years suggests cash flow pressures and potential difficulties in meeting short-term obligations. Given these trends, the company currently lacks sufficient financial strength and resilience to support new credit facilities without substantial mitigating factors or guarantees.

2. Financial Strength:
   The balance sheet shows a significant erosion of net assets from £16,339 at the last two years-end (2023 and 2024) down to £2,982 in 2025. Fixed assets are minimal (£3,335), and the company holds very limited current assets (£882) against current liabilities of £1,235. The shareholder funds have similarly shrunk, indicating accumulated losses or withdrawals. Such a decline in equity and working capital signals weakened financial stability and a fragile capital base.

3. Cash Flow Assessment:
   Current liabilities exceed current assets, resulting in negative net working capital at the latest year-end. This implies the company may struggle to meet short-term liabilities as they fall due without additional cash inflows or external funding. The absence of employees and presumably lean operations may reduce overhead costs, but the poor liquidity position remains a concern. No profit and loss data was provided, limiting insight into operating cash flow generation.

4. Monitoring Points:

• Monitor subsequent accounts filings for any recovery in net current assets and net equity.
• Watch for timely payment behavior and any overdue trade or financial liabilities.
• Assess director’s plans or capital injections to restore liquidity and solvency.
• Confirm whether any external financing or credit support is in place or planned.
• Track sales and operating cash flow trends given the business focus on IT consultancy and online retail.