Company Number: 12417750

Analysis Date: 2025-07-29 16:15 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   KANSY LTD demonstrates positive net assets growth and maintains a low level of liabilities relative to current assets, indicating a modestly improving financial position. However, the absolute scale of operations is very small, with minimal cash reserves (£711) and no employees, which raises concerns about operational scale and resilience. The company’s ability to service additional credit facilities depends on stable or growing cash inflows and careful working capital management. Approval is recommended subject to limits aligned with current size and frequent monitoring of liquidity.

2. Financial Strength:
   The company’s net assets have increased from £1,157 at January 2023 to £2,006 at January 2024, showing a strengthening equity base. Current assets more than doubled to £3,226 mainly driven by increased trade debtors (£2,515), which could suggest growing sales or outstanding receivables. Current liabilities also nearly doubled but remain moderate at £1,220. The balance sheet is free of long-term debt or fixed assets, reflecting a lightweight asset base typical for a small service or agency business. Overall, the company maintains a positive net working capital position (£2,006), but the asset base is narrow.

3. Cash Flow Assessment:
   Cash on hand is modest at £711, covering only about 58% of current liabilities, implying potential liquidity constraints if debtors are not collected promptly. The increase in trade debtors is a risk factor for cash flow if collection periods extend. No employees are reported, which reduces fixed overhead outflows. Profit and loss reserves have grown, indicating retained earnings are building up, but cash flow should be monitored closely to ensure sufficient liquidity for short-term obligations.

4. Monitoring Points:

• Collection period on debtors to ensure timely cash inflows and avoid liquidity issues.
• Changes in current liabilities and any new credit commitments that might strain working capital.
• Turnover and profitability trends to confirm ongoing business growth and cash generation.
• Director’s management of cash reserves given minimal cash buffer relative to liabilities.
• Any expansion of business activities or staffing that could affect cost structure and credit risk.