CF NETWORK SOLUTIONS LTD

Executive Summary

CF Network Solutions Ltd demonstrates improving financial stability with a positive net asset base and strong working capital. The company has adequate liquidity to meet current obligations, but given its early stage and modest size, lending should be cautious and monitored closely. Overall, the company shows sound governance and potential for growth in the telecommunications sector.

CF NETWORK SOLUTIONS LTD - Analysis Report

Company Number: 13168494

Analysis Date: 2025-07-20 17:48 UTC

1. Credit Opinion: APPROVE with conditions. CF Network Solutions Ltd is a small private limited company active since 2021 with stable financials showing improvement in net assets and working capital. However, given its early stage and modest scale of operations, credit facilities should be limited and closely monitored until further financial track record is established. The directors appear engaged and the company is compliant with filings and reporting deadlines, which supports sound governance.

2. Financial Strength: The company’s net assets increased from £6,144 in FY 2023 to £12,017 in FY 2024, reflecting retained earnings growth and improved equity base. The fixed asset base is small (£2,314), consistent with a service-oriented telecom business. The company maintains positive shareholders’ funds and a low share capital of £2. The balance sheet shows a healthy net current asset position of £10,143, indicating good short-term financial stability.

3. Cash Flow Assessment: Cash on hand decreased from £35,986 to £22,310 year on year, but remains sufficient to cover current liabilities of £12,456 comfortably. Debtors are minimal (£289), suggesting efficient cash collection. The company’s working capital is positive and has increased significantly from the prior year. Overall liquidity appears adequate for current operations, though cash flow should be monitored given the drop in cash balances.

4. Monitoring Points:

• Continued improvement in cash balances and net current assets.
• Profitability trends and ability to generate positive cash flows from operations as the company matures.
• Management of working capital, especially debtor collection and control of current liabilities.
• Any significant changes in business scale or capital expenditure that could affect liquidity.
• Compliance with filing deadlines and director conduct.