CANNYHEAT LIMITED

Executive Summary

Cannyheat Limited is a very small, recently established company showing early signs of financial stabilization with a slight positive net asset position. The business operates with low liquidity and minimal equity, warranting cautious credit exposure with conditions and active monitoring. Continued improvement in working capital and profitability will be key to strengthening creditworthiness.

CANNYHEAT LIMITED - Analysis Report

Company Number: 14062931

Analysis Date: 2025-07-29 15:58 UTC

1. Credit Opinion: CONDITIONAL APPROVAL Cannyheat Limited is a micro-entity operating in the underfloor heating and related building finishing sector. The company is relatively new (incorporated in 2022) and shows a modest but improving net asset position. While the latest accounts show a positive net current asset position (£268) and net assets of the same amount, the overall financial scale is very small, with low absolute asset values and minimal share capital (£2). The business has two employees and appears operationally active. The director and PSC profile is straightforward, with no adverse conduct records. However, the company’s limited financial history and minimal equity base suggest a cautious approach. Credit facilities could be granted on a limited basis with strict monitoring and possibly secured or guaranteed, reflecting the early stage and small size of the business.

2. Financial Strength: The balance sheet reveals very low total assets and net assets, with current assets of £6,935 against current liabilities of £6,667, resulting in a marginal positive working capital position. This is an improvement from the prior year where net current assets were negative (£-516). The company’s net assets have improved from a negative £516 to a positive £268. There are no fixed assets reported, indicating little to no capital investment or tangible asset base. The company’s equity is minimal but positive, which is a positive sign compared to the previous year’s deficit. Overall, the financial strength is weak due to the very small asset base and limited retained earnings, but it is trending positively.

3. Cash Flow Assessment: Current assets consist mainly of cash and receivables, but the figures are low, indicating tight liquidity. The net current asset position is positive but marginal (£268), which suggests limited working capital buffer. The company’s ability to meet short-term obligations is just adequate, and any unexpected cash flow disruption could strain liquidity. No detailed cash flow statement is available, but the trend from prior year indicates some improvement. The small scale and low cash reserves mean short-term financing needs must be carefully managed. The business should maintain tight control over receivables and payables to avoid liquidity stress.

4. Monitoring Points:

• Track monthly cash flow and working capital metrics to ensure liquidity remains positive.
• Monitor profitability trends once full accounts and P&L data are available, as current data is limited.
• Watch for any increase in liabilities or overdue payables that could indicate cash flow pressure.
• Observe any changes in directors or PSCs that might affect governance or financial stewardship.
• Review any new filings or financial updates for signs of growth or financial distress.
• Consider impact of economic conditions on the construction-related sector, particularly demand for heating installation services.