NKY FINANCE LTD

Executive Summary

NKY FINANCE LTD demonstrates stable financial health with solid liquidity and no current liabilities, supporting an ability to service debt. Despite a modest dip in net assets and increased provisions, the company’s low overhead structure and compliance record indicate sound financial stewardship. Continued monitoring of provisions and asset levels is recommended to mitigate emerging risks.

NKY FINANCE LTD - Analysis Report

Company Number: 13159905

Analysis Date: 2025-07-29 21:06 UTC

1. Credit Opinion: APPROVE with positive consideration. NKY FINANCE LTD is an active private limited company operating in accounting and auditing activities. The company maintains a clean balance sheet with no current liabilities and no overdue filings, indicating timely compliance and disciplined financial stewardship. Although the net assets have slightly decreased from £5,489 to £4,364 in the latest year, the company remains solvent with positive equity and no signs of financial distress. The absence of employees suggests a low-cost operational model, reducing fixed overhead risks. Given these factors, the company appears capable of servicing credit obligations but should be monitored for its modest asset base and provision increases.

2. Financial Strength: The balance sheet shows net assets of £4,364 as of 31 January 2024, down from £5,489 the previous year. Fixed assets have declined from £669 to £440, which is minimal and immaterial to overall strength, as the company mainly holds current assets of £7,007 with no current liabilities, resulting in positive working capital. However, there is a significant increase in provisions for liabilities from £2,023 to £3,083, which reduces net assets and could indicate anticipated future expenses or risks. Share capital is nominal at £1, indicating a micro entity structure with limited capital injection. Overall, the financial position is stable but thinly capitalised, typical for a micro-entity.

3. Cash Flow Assessment: Current assets are primarily cash or equivalents given the lack of current liabilities, resulting in net current assets of £7,007. This liquidity position is strong relative to liabilities, suggesting the company can meet short-term obligations comfortably. Operating without employees reduces payroll cash drain, and no creditors are reported within the year, indicating sound working capital management. However, the increase in provisions warrants attention to ensure these do not evolve into cash flow pressures. The company’s cash flow appears sufficient for ongoing operational needs and modest credit facilities.

4. Monitoring Points:

• Track the provisions for liabilities closely to understand the nature and timing of these potential outflows.
• Monitor net asset trends for further erosion, which could impair capital adequacy.
• Watch for any increase in current liabilities that might strain liquidity.
• Review any operational changes or employee additions that could affect fixed costs.
• Maintain oversight of timely filing compliance as a proxy for management quality and governance.