CLARKE INFRASTRUCTURE LIMITED

Executive Summary

Clarke Infrastructure Limited shows signs of financial distress with persistently negative net assets and worsening liquidity over recent years. While still compliant and active, the company requires urgent capital injection and cost management to avoid insolvency. With prompt action, there is potential for financial stabilization and recovery.

CLARKE INFRASTRUCTURE LIMITED - Analysis Report

Company Number: 12621296

Analysis Date: 2025-07-29 14:45 UTC

Financial Health Assessment Report for Clarke Infrastructure Limited

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1. Financial Health Score: D

Explanation:
The company is currently operating with a negative net asset position that has worsened over the past three years, indicating financial distress. Although it remains active and compliant with filing deadlines, the absence of current assets and increasing current liabilities suggest liquidity concerns. Given these signs, a grade D reflects a weak financial condition requiring urgent attention.

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2. Key Vital Signs

Metric	Latest (2024)	Interpretation
Fixed Assets	£0	No long-term assets; possibly minimal investment in infrastructure or equipment.
Current Assets	£0	No cash, receivables, or inventory to cover short-term obligations.
Current Liabilities	£832	Small but increasing short-term debts to be paid within a year.
Net Current Assets	-£832	Negative working capital; company lacks liquidity to meet short-term liabilities.
Net Assets (Shareholders’ Funds)	-£832	Company is insolvent on a balance sheet basis; equity is negative.
Share Capital	£100	Minimal equity base; small initial funding.
Average Number of Employees	1	Very small operational scale.
Filing Status	Up to date	No overdue filings; good compliance behavior.

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3. Diagnosis: Financial Symptoms and Underlying Condition

• Symptoms of Distress:
  The company’s balance sheet reveals a persistent negative net asset position, worsening from -£366 in 2022 and 2023 to -£832 in 2024. This indicates that liabilities exceed assets, a classic symptom of financial strain. The absence of any fixed or current assets suggests no cash reserves or receivables to support operations or pay creditors. The current liabilities have more than doubled from 2023 to 2024, exacerbating liquidity risks.

• Underlying Causes:
  The company appears to be in a start-up or development phase given its incorporation in 2020 and micro-entity status, but it has not accumulated assets or profits. The director is the sole employee, indicating limited operational scale and possibly limited revenue generation. The negative equity likely stems from accumulated losses or unpaid liabilities.

• Risk of Insolvency:
  With negative working capital and shareholders’ funds, the company is at risk of insolvency if it cannot generate positive cash flow or secure additional funding. The fact that it remains active and compliant is positive, but the balance sheet "vital signs" suggest the business is not currently financially healthy.

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4. Prognosis: Future Financial Outlook

Without intervention, the company’s financial health may continue to deteriorate. The lack of assets and increasing liabilities could lead to cash flow problems, inability to pay suppliers or creditors, and potential insolvency proceedings. However, if the director can inject capital, increase revenues, or reduce liabilities, there is potential for recovery given the small scale of operations and limited fixed commitments.

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5. Recommendations: Prescriptions for Financial Wellness

• Capital Injection:
  The company requires an immediate cash injection to improve liquidity and reduce negative working capital. This could come from the director, investors, or loans.

• Cost Control:
  Review and minimize operating expenses to reduce liabilities and conserve cash.

• Revenue Generation:
  Focus on acquiring contracts or clients to generate positive cash flows. As the company specializes in engineering design for industrial processes, targeted marketing and networking could help.

• Regular Financial Monitoring:
  Implement monthly cash flow and financial position reviews to detect early signs of distress and respond promptly.

• Consider Professional Advice:
  Engage a financial advisor or insolvency practitioner early to explore restructuring options if needed.

• Maintain Compliance:
  Continue timely filing of accounts and confirmation statements to avoid penalties and maintain good standing.

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Medical Analogy Summary

Clarke Infrastructure Limited currently exhibits serious "symptoms of financial distress," such as negative "working capital" and "net assets," akin to a patient with critical vital signs indicating organ failure risk. The company’s "financial pulse" is weak, lacking cash reserves ("healthy cash flow") to sustain operations. Immediate "treatment" through capital infusion and cost management is essential to stabilize and restore financial health.

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