IVANOV DESIGN LTD

Executive Summary

IVANOV DESIGN LTD has demonstrated solid financial growth since inception, with improving net assets and liquidity supported by increased cash balances and controlled current liabilities. The presence of finance lease obligations requires ongoing monitoring to safeguard repayment capability. Subject to prudent credit limits and regular review of cash flow and debtor management, the company presents an acceptable credit risk.

IVANOV DESIGN LTD - Analysis Report

Company Number: 13015026

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

1. Credit Opinion: APPROVE with conditions
   IVANOV DESIGN LTD exhibits a positive financial trajectory with increasing net assets and improved working capital, indicating enhanced ability to meet obligations. However, the company carries finance lease liabilities that are significant relative to current assets and cash balances. Approval is recommended if credit limits are modest and monitoring is in place, ensuring the company maintains liquidity and controls debt levels.

2. Financial Strength:
   The company’s net assets have increased from £6,442 in 2020 to £25,330 in 2023, reflecting consistent growth and retained earnings accumulation. Tangible fixed assets total approximately £20k, supporting operational capacity. Shareholders’ funds have nearly quadrupled since incorporation, demonstrating strengthening equity. Debt comprises mostly finance leases (£20,358) with no long-term bank loans reported.

3. Cash Flow Assessment:
   Cash holdings have more than doubled from £9,815 to £21,771 over the last year, improving liquidity. Current assets (£43,200) exceed current liabilities (£17,499), yielding strong net current assets (£25,701), which suggests good short-term financial health and working capital management. Debtors remain sizeable but have decreased, reflecting possible improvement in collections. No employees are reported, indicating a lean cost structure but also potential reliance on the director for operations.

4. Monitoring Points:

• Monitor finance lease obligations and cash flow to ensure timely servicing of lease payments.
• Track debtor days and credit control effectiveness to maintain or improve liquidity.
• Review future accounts for operating profit trends, as profit and loss details are not disclosed.
• Confirm no material changes in director commitment or company activity, as staffing is nil.