CANZINI DIRECTION LIMITED

Executive Summary

Canzini Direction Limited, a recently established micro private limited company, shows improving financial strength with positive net current assets and rising shareholder funds. The company's liquidity appears adequate to service current liabilities, supported by director funding. Credit approval is recommended with ongoing monitoring of the director’s loan account and current liabilities growth.

CANZINI DIRECTION LIMITED - Analysis Report

Company Number: 14528497

Analysis Date: 2025-07-29 12:57 UTC

1. Credit Opinion: APPROVE (with monitoring).
   Canzini Direction Limited demonstrates solid financial fundamentals for a micro-entity. The company shows a positive net current assets position and shareholder funds growth over two years, indicating improving financial stability. The single director and sole significant controller’s involvement supports clear governance, though the director’s advances raise a point for attention. Given its very recent incorporation (2022) and limited operating history, caution is warranted, but current data supports credit approval at a modest facility level, subject to ongoing performance review.

2. Financial Strength:
   The balance sheet is healthy for a micro-sized private limited company. Net current assets increased from £52,154 at the end of 2023 to £81,954 at the end of 2024, reflecting an improving liquidity buffer. Shareholders’ funds mirror this rise, suggesting retained earnings or capital injections have strengthened equity. There are no long-term liabilities reported, and total assets are modest but sufficient for the company’s scale. The director’s loan balance increased substantially to £58,940, representing funds advanced by the director not yet repaid, which should be monitored but does not currently impair solvency.

3. Cash Flow Assessment:
   Current assets largely consist of short-term receivables or cash equivalents, sufficient to cover current liabilities, which remain under £66k. The net working capital position is positive, indicating the company can meet short-term obligations as they fall due. The increase in current liabilities from £19,300 (2023) to £65,929 (2024) warrants monitoring, but is currently well covered by liquid assets. The absence of cash flow statements limits detailed cash generation analysis, but the balance sheet suggests reasonable liquidity for operational needs.

4. Monitoring Points:

• Director’s loan account: The rising balance of nearly £59k should be reviewed regularly to ensure it does not convert into a permanent liability or affect capital adequacy.
• Growth in current liabilities: The threefold increase year-on-year needs explanation to rule out any undue short-term financial pressure.
• Filing and reporting: Maintain timely submission of accounts and confirmation statements to avoid compliance risks.
• Business performance: Monitor revenue growth and profitability trends as the company matures beyond the micro-entity stage to assess capability for increased credit lines.