Company Number: 14340153

Analysis Date: 2025-07-29 16:26 UTC

1. Risk Rating: HIGH
   KNOWTION ADVISORY LTD exhibits significant solvency and liquidity concerns as evidenced by consistent negative net assets, negative shareholders' funds, and minimal cash reserves against substantial liabilities. The company's financial position deteriorated over the last three years, indicating elevated financial risk.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company has reported net liabilities of £4,366 and shareholders’ funds of -£4,466 as of 30 September 2024, worsening from previous years, suggesting erosion of equity and potential insolvency risk.
• Working Capital Deficit: Net current liabilities remain negative (£2,385 as of 2024), highlighting that current liabilities exceed current assets, which may lead to cash flow difficulties meeting short-term obligations.
• High Non-Current Creditors: The company has long-term creditors amounting to £6,858, indicating debt obligations that may pressure financial stability given negative equity and low cash balances.

3. Positive Indicators:

• Compliance with Filing Requirements: The company is up to date with its accounts and confirmation statement filings, indicating regulatory adherence and governance discipline.
• Small Employee Base: Average of 2 employees keeps operational overheads low, which may help conserve cash.
• Fixed Assets Presence: Tangible fixed assets valued at £4,877 could potentially be leveraged to support liquidity if needed.

4. Due Diligence Notes:

• Investigate the nature and terms of both current and non-current creditors to assess repayment schedules and covenant risks.
• Review detailed turnover and profitability trends not available in the filleted accounts to understand operational performance and future cash flow prospects.
• Clarify if additional capital injections or financial support are planned or have been secured given the negative equity position.
• Confirm the absence of director or governance issues, including any related party transactions or director loans, which might exacerbate financial risks.