MY KIND OF THINKING LTD

Executive Summary

My Kind of Thinking Ltd shows emerging financial strain as evidenced by its slight net liability position and reduced working capital in the latest accounts, raising medium solvency and liquidity risks. However, compliance with filings and stable director management provide some governance reassurance. Closer examination of cash flows and business sustainability is recommended before investment consideration.

MY KIND OF THINKING LTD - Analysis Report

Company Number: 13555027

Analysis Date: 2025-07-19 12:55 UTC

1. Risk Rating: MEDIUM
   The company has moved from positive net assets (£8,051 in 2023) to net liabilities (-£491 in 2024), indicating a deterioration in financial position. While the absolute amounts are small given its micro entity status, the negative net assets suggest potential solvency concerns if this trend continues.

2. Key Concerns:

• Negative net assets in the latest financial year, indicating the company’s liabilities slightly exceed its current assets and total equity.
• Declining current assets from £37,048 to £23,550 while current liabilities remain relatively high (£24,041), resulting in a negative working capital position. This raises liquidity risk concerns.
• The company is very small (micro entity) with limited financial disclosures and no audit, which restricts visibility on operational sustainability and financial robustness.

3. Positive Indicators:

• The company is compliant with filing deadlines (accounts and confirmation statement are not overdue), demonstrating good regulatory adherence.
• Directors have maintained consistent appointments since incorporation, with no public record of disqualifications or governance issues.
• The business operates in a niche education sector (SIC 85590) which may provide stable, ongoing demand, supported by the directors’ relevant professional background as dyslexia assessors.

4. Due Diligence Notes:

• Investigate the causes of the decline in net assets and working capital deterioration in 2024 compared to 2023 to assess if this is a one-off issue or an ongoing trend.
• Review cash flow statements and any off-balance sheet liabilities that might impact liquidity.
• Confirm the company’s business plan viability and revenue generation capacity considering its small scale and recent financial performance.
• Verify directors’ related party transactions or loans which might affect the financial position.
• Assess the completeness of financial disclosures, given the use of micro-entity reporting exemptions limiting reported data.