Company Number: 15352230

Analysis Date: 2025-07-20 16:06 UTC

1. Credit Opinion: CONDITIONAL APPROVAL Hanzo Solution Ltd is a newly incorporated private limited company (Dec 2023) operating in freight transport by road. Its first financial period covers only 4 months to March 2024. The company reported a modest turnover of £11,996 with a break-even operating result. Cash and current assets exceed current liabilities, indicating short-term solvency. However, the company has minimal financial history and very limited scale, which increases risk. Credit approval could be considered on a conditional basis with strict limits and requirements for ongoing financial updates and monitoring.

2. Financial Strength: The balance sheet shows net current assets of £100 and net assets of the same amount, entirely represented by the issued share capital (£100). There are no fixed assets. The company’s equity base is minimal, reflecting its start-up status and short trading period. The absence of retained earnings or reserves means there is no buffer against losses. Overall financial strength is weak but not unusual for a start-up, relying heavily on the owner/director’s capital injection.

3. Cash Flow Assessment: Cash at bank stands at £107 with debtors of £41. Current liabilities are £48, mainly taxation and social security, which are fully covered by current assets. The company has positive working capital of £100, indicating adequate short-term liquidity to meet immediate obligations. However, cash flow visibility is limited due to the short trading history and small scale. The company must develop consistent cash flow generation to support credit facilities.

4. Monitoring Points:

• Turnover growth and profitability trends in subsequent trading periods.
• Timely settlement of taxation and social security liabilities.
• Changes in working capital and liquidity position.
• Director’s continued financial support or additional capital injections.
• Any increase in fixed assets or borrowing that impacts leverage.
• Compliance with filing deadlines and maintaining company good standing.