CANNY COMPS LIMITED

Executive Summary

Canny Comps Limited currently demonstrates poor financial strength marked by negative net assets and limited liquidity, reflecting high credit risk. The company’s micro-entity status and short operating history limit confidence in its ability to meet debt obligations. Credit approval is not recommended until substantial improvements in financial position and cash flow are evident.

CANNY COMPS LIMITED - Analysis Report

Company Number: 14493497

Analysis Date: 2025-07-29 14:55 UTC

1. Credit Opinion: DECLINE
   Canny Comps Limited exhibits significant financial weakness. The net asset position is negative (£-9,323), primarily due to long-term creditors of £9,880 exceeding current assets and net current assets of only £556. This indicates the company is reliant on external funding and lacks sufficient internal resources to cover liabilities. The company’s incorporation date in late 2022 and micro-entity status suggest minimal operating history, increasing the risk of insufficient cash generation for debt servicing. Without evidence of profitability or positive cash flows, the ability to service debt or credit obligations is questionable.

2. Financial Strength:
   The balance sheet shows very limited tangible assets and equity. Called up share capital is nominal (£1), and the company carries long-term liabilities of £9,880, which are not supported by corresponding assets or working capital. The net liabilities position and absence of fixed assets highlight weak financial footing and a fragile capital structure. The company’s micro-entity classification with only one employee and minimal current assets further underscore its limited scale and resources.

3. Cash Flow Assessment:
   The current assets (£556) are insufficient to cover current liabilities (£9,880), resulting in negative working capital. This indicates liquidity stress and an inability to meet short-term obligations from operational cash flows or current resources. The small cash and receivables position suggests limited cash inflows, placing the company at risk of default without additional financing or capital injections.

4. Monitoring Points:

• Monitor cash flow trends and working capital position closely, especially as the company grows beyond micro status.
• Watch for improvements in net assets and reduction of long-term liabilities to strengthen the balance sheet.
• Assess future profitability and operating cash flow generation to evaluate creditworthiness over time.
• Review director and shareholder actions regarding capital contributions or debt restructuring.
• Keep track of timely filing of accounts and confirmation statements to ensure ongoing compliance and transparency.