LOOP KINETICS LTD

Executive Summary

Loop Kinetics Ltd is a newly formed small private company with a stable opening financial position, positive working capital, and good compliance with filing requirements. However, limited operating history and modest scale highlight the need for further scrutiny of ongoing business viability and cash flow dynamics. Overall, current data suggests low immediate financial risk but warrants continued monitoring as the business develops.

LOOP KINETICS LTD - Analysis Report

Company Number: 15254765

Analysis Date: 2025-07-29 20:05 UTC

1. Risk Rating: LOW
   Loop Kinetics Ltd is a newly incorporated private limited company with its first set of unaudited accounts filed on time, showing positive net current assets and net assets. The company maintains a modest but positive working capital position and no overdue filings, indicating compliance and operational control. The financial position, while small in scale, does not raise immediate solvency or liquidity concerns.

2. Key Concerns:

• Limited Operating History: Incorporated in November 2023, the company has only one financial reporting period, limiting the ability to assess trends or business sustainability.
• Modest Asset and Equity Base: With net assets of £9,900 and just one employee, the scale suggests limited operational capacity, which may affect resilience to market or operational shocks.
• Concentration of Control: Significant control is split between two directors who also serve as main shareholders, which may present governance risks if conflicts arise.

3. Positive Indicators:

• Positive Net Current Assets: The company shows net current assets of £5,834, indicating current liabilities are covered by current assets, supporting short-term liquidity.
• No Overdue Filings: Both accounts and confirmation statements are filed on time, demonstrating regulatory compliance and good governance practices.
• Clear Financial Reporting: Accounts prepared under FRS 102 Section 1A with appropriate accounting policies and no material departures, enhancing transparency despite being unaudited.

4. Due Diligence Notes:

• Verify Revenue and Profitability Trends: Obtain management accounts or forecasts to assess business sustainability beyond the opening financial position.
• Examine Contractual Commitments and Cash Flow: Review details of trade debtors and creditors to understand cash flow cycles and potential credit risks.
• Assess Directors’ Backgrounds: Confirm no prior disqualifications or regulatory issues for the directors to mitigate governance risk.