DIANI ACCOUNTANCY LIMITED

Executive Summary

DIANI ACCOUNTANCY LIMITED is a small, active accounting firm with modest but positive net assets and working capital demonstrating an ability to meet current obligations. While the company shows steady growth, the limited scale and single director control warrant a cautious credit approach. Conditional approval is recommended with ongoing monitoring of liquidity and operational performance.

DIANI ACCOUNTANCY LIMITED - Analysis Report

Company Number: 13525351

Analysis Date: 2025-07-20 14:00 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Diani Accountancy Limited demonstrates a stable but modest financial position consistent with a micro-entity in the accounting industry. The company maintains positive net assets and net current assets, indicating an ability to meet short-term obligations. However, the scale of operations is very small, with limited fixed assets and only one employee, which implies constrained operational capacity and limited financial resilience. The director maintains full control, suggesting stable governance but limited diversification in management. Credit approval is recommended with conditions: limit exposure to modest credit facilities aligned with the company’s scale, and require regular financial updates to monitor liquidity and performance.

2. Financial Strength:
   The balance sheet shows net assets increasing from £867 in 2023 to £1,598 in 2024, reflecting gradual growth in equity. Fixed assets are minimal but stable (£1,148 to £1,600). Current liabilities have increased slightly to £3,200, but net current assets remain positive at £3,200, indicating adequate working capital coverage. The company’s total assets less current liabilities stand at £1,598, confirming a positive net asset position. Overall, the financial strength is modest but sound for a micro-sized accounting service provider.

3. Cash Flow Assessment:
   The net current assets of £3,200 imply sufficient short-term liquidity to cover current liabilities. Although detailed cash flow statements are unavailable, the positive working capital and modest liabilities suggest the company can meet its immediate payment obligations. The stable employee count and small asset base reduce capital expenditure demands, supporting cash flow stability. However, absence of detailed income and cash flow data means potential volatility or seasonality cannot be fully assessed.

4. Monitoring Points:

• Monitor net current assets and liquidity trends to ensure continued ability to cover short-term debts.
• Track any significant changes in liabilities, especially current liabilities, which could strain working capital.
• Review director-related transactions and governance, given sole control by one individual.
• Request periodic financial statements to detect any operational or financial deterioration early.
• Monitor business growth indicators such as client base expansion, revenue trends, and employee numbers to assess scaling potential and credit risk.