Company Number: 13300797

Analysis Date: 2025-07-19 12:23 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Bunny Hall Limited is a micro-entity with limited financial history, incorporated in 2021 and actively trading in business support services. The company shows positive net assets and working capital, but a declining trend in liquidity and overall net assets from £13,584 in 2023 to £9,119 in 2024. Given the small scale and limited financial buffers, credit facilities should be cautiously considered with conditions such as regular financial monitoring and possibly collateral or personal guarantees to mitigate risk.

2. Financial Strength:
   The balance sheet indicates modest fixed assets (£1,776) and current assets (£13,762) against current liabilities of £6,419, yielding net current assets of £7,343 as of March 2024. The net assets declined by approximately 33% year-on-year, signaling a reduction in retained earnings or possible cash outflows exceeding inflows. Equity remains positive at £9,119, but the downward trend suggests tightening financial strength that requires attention.

3. Cash Flow Assessment:
   Current assets primarily consist of short-term assets sufficient to cover current liabilities with a current ratio roughly 2.15 (13,762/6,419), indicating reasonable short-term liquidity. However, the drop in current assets from £17,060 in 2023 to £13,762 in 2024 signals potential pressure on cash or receivables management. With only two employees and micro-entity status, working capital appears sufficient but limited margin exists for unexpected cash flow disruptions.

4. Monitoring Points:

• Watch the trend in net current assets and net assets for further declines.
• Monitor cash flow statements and debtor days to ensure liquidity remains adequate.
• Review profitability and retention of earnings in future accounts to assess sustainability.
• Track director and shareholder activity given their significant control and potential impact on financial decisions.