N&K ASSETS LTD

Executive Summary

N&K Assets Ltd is an active micro-entity engaged in real estate trading, showing recent improvement from negative to slightly positive net assets. However, the company carries considerable long-term liabilities nearly matching its fixed assets, raising moderate solvency concerns. While regulatory compliance is satisfactory, further investigation into debt terms and cash flow is recommended to gauge liquidity and operational viability.

N&K ASSETS LTD - Analysis Report

Company Number: 14355530

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

1. Risk Rating: MEDIUM
   The company shows asset growth and positive net assets in the latest year but carries significant long-term liabilities close to total assets, indicating moderate solvency risk. The micro-entity status and limited financial disclosure restrict full assessment, but current data points to cautious optimism tempered by leverage concerns.

2. Key Concerns:

• High Long-term Liabilities: Creditors due after more than one year (£598,412) nearly match total fixed assets (£596,674), suggesting heavy reliance on debt financing and potential solvency strain.
• Thin Net Asset Base: Net assets improved to £14,208 from negative £2,106 in prior years but remain very low, implying limited equity buffer to absorb losses or financial shocks.
• Limited Operating Scale: Small employee base (2) and micro-entity classification indicate a very small operation, which may face sustainability challenges and limited financial flexibility.

3. Positive Indicators:

• Improved Financial Position: Net assets have moved from negative to positive within two years, reflecting progress in financial health.
• Timely Filings: Accounts and confirmation statements are filed on time with no overdue notices, indicative of good regulatory compliance and governance.
• Ownership and Control Transparency: Clear disclosures on persons with significant control and stable director appointments provide governance transparency.

4. Due Diligence Notes:

• Verify the nature and terms of the substantial long-term liabilities to assess repayment obligations and refinancing risk.
• Request underlying cash flow statements or management accounts to evaluate liquidity beyond balance sheet snapshots.
• Understand the business model and revenue generation to assess operational sustainability given the small scale and asset-heavy balance sheet.
• Confirm no director disqualifications or adverse regulatory actions; current data shows none but requires ongoing monitoring.