Company Number: SC679978

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

1. Credit Opinion: CONDITIONAL APPROVAL
   CLC ALLTRADES LTD shows a positive turnaround from prior years with net assets improving from a negative £37,199 in 2022 to a positive £9,934 in 2023. The company operates in plumbing and installation services, a sector generally resilient to modest economic fluctuations. However, net current liabilities remain negative at £4,827, indicating some short-term liquidity pressure. The company’s ability to meet current obligations depends on careful cash flow management and maintaining or growing revenues. Approval is recommended with conditions: ongoing monitoring of liquidity and receivables management is essential to ensure sustained financial health.

2. Financial Strength:

• Fixed assets are stable at approximately £25,595, suggesting capital investment is maintained without excessive depreciation.
• Total net assets have turned positive due to a significant reduction in creditors and improved retained earnings (profit and loss reserve).
• Shareholders’ funds remain modest (£9,934), reflecting a small equity base but improved from prior deficits.
• The company has grown its workforce from 7 to 14 employees, indicating business expansion.
• Long-term liabilities have decreased from £27,084 to £10,834, indicating deleveraging efforts.

3. Cash Flow Assessment:

• Cash balances improved markedly to £36,405 from £19,102, enhancing liquidity.
• However, current liabilities (£46,480) still exceed current assets (£41,653), resulting in a negative working capital position of £4,827.
• Absence of debtors in the latest accounts suggests either improved cash collection or reduced sales on credit terms; this should be confirmed.
• The company should ensure ongoing operating cash flow covers current liabilities to avoid liquidity issues.

4. Monitoring Points:

• Track net current assets quarterly to ensure working capital remains positive or manageable.
• Monitor cash conversion cycle closely, especially receivables and payables days.
• Watch for any increase in short-term creditors or late payments which may indicate cash strain.
• Review profit margins and revenue growth to confirm sustainable operational performance.
• Keep an eye on director changes and any significant related-party transactions given the relatively small shareholder base.