Company Number: 13299302

Analysis Date: 2025-07-20 11:25 UTC

1. Credit Opinion: DECLINE. Sunny Space Ltd is a micro private limited company primarily engaged in real estate letting and trading. Despite owning significant fixed assets (£250,000), the company exhibits a highly leveraged position with long-term liabilities (£250,150) almost equal to the fixed asset value, leaving very thin net equity (£1,992). Current assets are extremely low (£2,388) compared to current liabilities (£246), though short-term liabilities are minimal. The company shows no employees and minimal working capital, indicating limited operational scale and cash flow generation capability. The lack of profitability data and absence of audit further obscure the financial health. The director is the sole controlling party, which concentrates governance risk. Overall, the company’s financial structure suggests limited capacity to service additional debt or absorb economic stress, making credit extension unsuitable at this stage.

2. Financial Strength: The balance sheet is dominated by fixed assets of £250,000, presumably real estate holdings. However, these are almost fully encumbered by long-term creditors (£250,150), resulting in negligible net assets of £1,992. Shareholders’ funds have marginally increased from £947 in 2023 but remain minimal. Current assets are nearly negligible and do not provide meaningful liquidity. The company’s micro-entity status limits reporting detail, but the balance sheet reveals a fragile equity base and heavy leverage with thin cushioning for financial shocks.

3. Cash Flow Assessment: Current assets comprise only £2,388, mainly cash or equivalents, while current liabilities stand at £246, yielding a positive but very small net working capital (£2,142). The absence of employees and lack of profit and loss disclosures limit insight into operating cash flows. The company likely relies on rental income or asset sales to meet obligations. Given the high long-term creditor balance, cash flow is likely constrained by debt servicing requirements. There is no indication of free cash flow available for new credit facilities, and liquidity appears tight.

4. Monitoring Points:

• Monitor changes in long-term liabilities relative to fixed assets to assess leverage shifts.
• Track cash balances and short-term creditor levels for liquidity fluctuations.
• Review any future profit and loss information or cash flow statements for operational performance trends.
• Watch for any changes in director or ownership structure that could affect governance.
• Confirm timely filing of accounts and statutory returns to ensure transparency.