Company Number: 14329416

Analysis Date: 2025-07-20 13:32 UTC

1. Risk Rating: MEDIUM
   Clarkson & Grandson Limited shows a decline in net current assets and cash reserves from 2023 to 2024, with cash almost negligible at £10 by 2024 year-end against current liabilities of £8,043. While the company remains solvent on a balance sheet basis, the very low cash position relative to liabilities raises moderate liquidity concerns.

2. Key Concerns:

• Significant reduction in cash from £18,233 in 2023 to £10 in 2024, indicating potential cash flow stress.
• Current liabilities remain material (~£8,000) with minimal cash available, risking difficulty meeting short-term obligations.
• Decline in net assets and shareholder funds from £8,876 to £1,595, possibly reflecting operational losses or asset write-downs in a short period since incorporation in 2022.

3. Positive Indicators:

• The company is active, compliant with filing deadlines for accounts and confirmation statements, showing good regulatory discipline.
• Small size and limited employee count (2 employees) suggest a lean cost structure, potentially easier to manage operational cash flow.
• No audit requirement, consistent with small company exemption, reducing overheads.

4. Due Diligence Notes:

• Investigate reasons behind the sharp decline in cash and net assets in the 2024 accounts, including review of profit and loss account figures (not publicly filed).
• Assess cash flow management and short-term financing arrangements to understand ability to meet current liabilities.
• Review business contracts, client base, and revenue trends in the painting sector (SIC 43341) to evaluate operational sustainability.
• Confirm the company’s plans or capacity to improve liquidity or raise additional capital.
• Verify director background and any related party transactions affecting financial stability.