CLANMADE LIMITED

Executive Summary

CLANMADE LIMITED is financially robust for a micro-entity, with strong liquidity, growing net assets, and prudent management typical of a healthy service-based business. The company’s asset-light model and positive working capital suggest excellent cash flow health, positioning it well for controlled growth. Maintaining disciplined financial practices and exploring strategic investments will help sustain and improve its financial wellness.

CLANMADE LIMITED - Analysis Report

Company Number: 12787984

Analysis Date: 2025-07-29 20:44 UTC

Financial Health Assessment of CLANMADE LIMITED

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1. Financial Health Score: A-

Explanation:
CLANMADE LIMITED demonstrates a strong and stable financial position typical of a healthy micro-entity business. The company shows consistent growth in net assets, a solid positive working capital (net current assets), and prudent management of liabilities. The score A- reflects excellent liquidity and capital structure but acknowledges the limited scale and scope inherent to micro-entities.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Fixed Assets	£213	Very low fixed assets indicating asset-light operations typical in IT consultancy.
Current Assets	£286,058	Healthy cash and receivables, indicating a good cash buffer.
Current Liabilities	£40,530	Low short-term liabilities relative to assets, manageable obligations.
Net Current Assets (Working Capital)	£245,528	Strong positive working capital, reflects healthy liquidity ("healthy cash flow").
Net Assets (Equity)	£245,741	Increasing net assets over 5 years, good accumulation of retained earnings.
Shareholders Funds	£245,741	Equity fully funds the business, no indication of over-leverage.
Employee Count	1	Small team, likely founder-led or sole operator, consistent with micro category.

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3. Diagnosis

CLANMADE LIMITED exhibits the "vital signs" of a financially healthy micro-business. The company’s balance sheet shows a strong liquidity position with net current assets more than six times current liabilities, indicating ample short-term assets to cover debts. The steady increase in net assets from £46,900 in 2020 to £245,741 in 2024 reflects consistent profitability and retention of earnings, without the need for external debt financing.

The minimal fixed assets suggest the company operates a service-based model, likely relying on intellectual property or software development (aligned with SIC codes 62020 and 62012) rather than physical capital investments. This asset-light approach can enhance flexibility and reduce financial risk.

The average employee count of one aligns with a lean operation, which reduces fixed costs and overheads, beneficial in maintaining cash flow health. There are no indications of financial distress symptoms such as overdue filings, negative working capital, or growing liabilities.

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4. Recommendations

To maintain and enhance financial wellness, the company should consider the following:

• Cash Flow Management: Continue monitoring cash flow closely to ensure liquidity remains strong, especially if business scales or takes on additional employees.
• Growth Investment: Explore strategic investment in technology or personnel to support business growth, ensuring that any increase in liabilities is balanced by asset or revenue growth.
• Profit Retention: Maintain prudent profit retention to build reserves for future downturns or investment needs.
• Compliance: Continue timely filing of accounts and returns to avoid penalties and maintain good standing.
• Risk Management: Given the small team size, consider risk mitigation strategies such as key person insurance and succession planning.
• Market Positioning: Leverage the company website and IT consultancy expertise to expand client base and increase revenue streams sustainably.

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