CANNDO CONSULTING LTD

Executive Summary

Canndo Consulting Ltd is a newly formed micro-entity with a modest but positive net asset base and no long-term liabilities. Its financial profile shows adequate short-term liquidity but limited operating history, warranting cautious credit exposure. Continued monitoring of trading performance and financial filings is recommended before increasing credit facilities.

CANNDO CONSULTING LTD - Analysis Report

Company Number: 15268293

Analysis Date: 2025-07-20 13:03 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Canndo Consulting Ltd is a newly incorporated micro private limited company (established November 2023) with minimal financial history. Its first set of unaudited accounts to November 2024 shows modest net current assets of £7,170 and no employees. The company operates in management consultancy, a sector with relatively low capital requirements but dependent on contract wins and client retention. Given the early stage of operations, limited asset base, and no historical profit record, credit exposure should be conservative and facilities sized accordingly. Approval is conditional on ongoing monitoring of trading performance and timely filing of future accounts.

2. Financial Strength:
   The balance sheet indicates a small but positive net asset position (£7,170) entirely funded by net current assets. There are no fixed assets and no reported long-term liabilities. Current liabilities of £3,045 are adequately covered by current assets of £10,215, reflecting a healthy short-term liquidity position at this snapshot. The absence of long-term debt and positive shareholders’ funds mitigate risk, but the scale is very small and capitalisation limited.

3. Cash Flow Assessment:
   The company’s liquidity appears sufficient for its current scale, with net working capital of approximately £7,170. However, no detailed cash flow statement is available, and the company reports no employees, suggesting minimal immediate operating expenses. As a micro-entity in consultancy, cash flow will largely depend on timely receipt of client fees and managing payables. The lack of historical cash flow data means future cash flow stability is unproven, requiring cautious credit limits and potentially requiring personal guarantees or other security.

4. Monitoring Points:

• Future account filings to assess revenue growth, profitability, and cash flow generation
• Changes in current assets and liabilities to detect working capital pressure
• Directors' compliance with filing deadlines and regulatory requirements
• Development of client base and contract pipeline in management consultancy
• Any introduction of debt or external financing impacting leverage and liquidity