SUNNYFY ENTERTAINMENTS LTD

Executive Summary

SUNNYFY ENTERTAINMENTS LTD demonstrates modest but steady growth in net assets with a predominantly fixed asset base. Liquidity is currently constrained due to a sharp decline in current assets and minimal working capital, warranting cautious credit extension with conditions. Continuous monitoring of cash flow and financial filings is essential to mitigate credit risk given the company's small scale and single-person management.

SUNNYFY ENTERTAINMENTS LTD - Analysis Report

Company Number: 13574106

Analysis Date: 2025-07-29 21:05 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   SUNNYFY ENTERTAINMENTS LTD is a micro-entity operating in artistic creation with a single director and 100% shareholder control. The company shows positive net assets and stable financial growth, but very limited current assets and working capital in 2024 raise concerns over liquidity. The absence of employees and modest fixed assets indicate a small scale operation. Credit should be extended cautiously with conditions requiring ongoing monitoring of cash flow and prompt receipt of updated financials to ensure they maintain sufficient liquidity for debt servicing.

2. Financial Strength:
   The balance sheet presents increasing net assets from £1,056 in 2021 to £7,068 in 2024, driven primarily by growth in fixed assets (£6,978 in 2024 from £1,000 in 2021). However, current assets dropped sharply from £2,977 in 2023 to £423 in 2024, while current liabilities declined from £1,557 to £333. This results in net current assets falling from £1,420 to only £90, signaling tightening short-term financial flexibility. Overall equity remains positive and growing, indicating retained earnings or capital injections.

3. Cash Flow Assessment:
   The company’s liquidity position is weak with net current assets barely positive (£90), suggesting limited buffer to cover short-term obligations. Cash or equivalents appear minimal, and the sharp decline in current assets year-on-year points to potential cash flow constraints. Given no employees, overheads may be low, but the company’s ability to meet new or unexpected claims is restricted. Close attention to cash collection and working capital management is advised.

4. Monitoring Points:

• Quarterly updates on cash balances and receivables to track liquidity trends.
• Timely filing of next accounts and confirmation statements to ensure transparency.
• Watch for any director changes or significant shareholder actions given single-person control.
• Monitor any increase in current liabilities or overdrafts that might pressure cash flow.
• Assess any expansion in fixed assets or employee count that could impact capital requirements.