CLEAR PAY LTD

Executive Summary

CLEAR PAY LTD is a newly formed private limited company currently dormant with minimal financial activity. It shows no signs of distress but lacks operational data to assess profitability or liquidity. The company’s financial health is stable but inactive, requiring strategic decisions on commencing trading and financial management to ensure future viability.

CLEAR PAY LTD - Analysis Report

Company Number: 14778456

Analysis Date: 2025-07-20 17:08 UTC

Financial Health Score: D (Dormant Status Limits Assessment)
Explanation: CLEAR PAY LTD is classified as a dormant company with minimal financial activity and very limited financial data available. This status constrains a full financial health evaluation, resulting in a score reflecting the absence of operational financial indicators rather than distress or strong performance.

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Key Vital Signs

Metric	Value	Interpretation
Company Status	Active	The company is registered and operating officially, but dormant financially.
Account Category	Dormant	No significant trading or financial transactions during the reported period.
Cash at Bank and in Hand	£100	Nominal cash balance; typical for dormant status, indicating minimal activity.
Net Assets	£100	Very low net assets, reflecting initial share capital only.
Shareholders’ Funds	£100	Equity equals the nominal share capital, no retained profits or liabilities.
Directors and Control	Single Director/PSC holds 75-100% shares and voting rights	High concentration of control, typical for small private companies.
SIC Code	78200	Intended business activity: Temporary employment agency activities, but no trading yet.
Filing Status	Up to date	No overdue filings; compliant with statutory requirements.

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Symptoms Analysis

• Dormant Financials: The accounts show no trading activity, no liabilities, and only nominal cash and equity. This is typical for a company newly formed or in a holding phase before commencing operations.
• Minimal Working Capital: Cash and net assets are minimal, indicating no operational cash flow or business transactions.
• No Profit or Loss Data: Absence of P&L statements or reserves means no evidence of revenue generation or expenses.
• Control Concentration: The sole director and person with significant control is the same individual, which is common in micro businesses but poses governance risk if diversification of management is needed.
• Regulatory Compliance: Up-to-date filings and no overdue accounts or returns point to good administrative health, reducing regulatory risk.

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Diagnosis

CLEAR PAY LTD is in an embryonic or hibernation phase financially, with no active trading or financial operations recorded to date. The company’s "dormant" status means it is not yet generating cash flow, incurring expenses, or growing assets beyond the initial share capital. This is not a symptom of financial distress but rather an early stage or paused business state. The absence of operational data limits the ability to assess profitability, liquidity, or solvency.

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Prognosis

If the company plans to commence trading in the temporary employment agency sector (SIC 78200), it will need to build working capital, manage cash flow prudently, and generate revenues to transition from dormant status. Early financial health will depend heavily on the director's ability to secure contracts, manage costs, and comply with ongoing filing and tax obligations. Without operational activity, the company remains in a stable but inactive state. Future financial vitality will require active business development and capital investment.

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Recommendations

1. Activate Operations or Maintain Dormant Status: Decide whether to begin trading or maintain dormant status to avoid unnecessary regulatory burdens and costs.
2. Prepare for Operational Financial Management: If commencing business, establish systems for cash flow monitoring, invoicing, and expense tracking to avoid symptoms of financial distress.
3. Governance and Risk Management: Consider appointing additional directors or advisors to diversify oversight and reduce operational risk.
4. Ensure Compliance: Continue timely filing of accounts and confirmation statements to maintain good standing and avoid penalties.
5. Capital Planning: Assess capital requirements and funding options early to support working capital needs when trading begins.
6. Strategic Planning: Develop a business plan outlining expected cash inflows, outflows, and profitability milestones to guide financial decision-making.

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