Company Number: 12731005

Analysis Date: 2025-07-20 19:03 UTC

1. Credit Opinion: APPROVE
   FUN FEST LICHFIELD LTD demonstrates a stable financial position with consistent net assets growth from £9,427 in 2020 to £11,595 in 2023. The company maintains positive working capital and has no overdue filings, indicating good compliance and operational management. Its micro-entity status and small team of 4 employees are consistent with its business scale in child day-care activities. The directors have been in place since incorporation without red flags, supporting sound governance. Given the current data, the company appears capable of servicing short-term credit facilities.

2. Financial Strength:
   The balance sheet shows modest fixed assets (£563 in 2023) and a healthy increase in net current assets from £9,478 in 2022 to £11,032 in 2023. Total net assets have increased steadily, reflecting retained earnings or equity injections. Current liabilities are well covered by current assets, providing a sound liquidity buffer. The company is well-capitalized for its size with shareholders’ funds growing from £9,427 in 2020 to £11,595 in 2023.

3. Cash Flow Assessment:
   Current assets exceed current liabilities by a comfortable margin, supporting positive working capital management. Cash or equivalents are not explicitly detailed but given the overall net current assets and absence of overdue payables, liquidity appears sufficient for ongoing operations. The stable employee count suggests controlled overheads. The company’s ability to meet short-term obligations looks reliable.

4. Monitoring Points:

• Monitor cash flow statements when available to confirm operating cash generation and liquidity trends.
• Watch for any sudden increase in current liabilities which could strain working capital.
• Track revenue growth or changes in client base given the child day-care sector’s sensitivity to economic conditions.
• Maintain oversight of director appointments and any changes in ownership/control that might affect governance.