Company Number: 15022565

Analysis Date: 2025-07-29 13:14 UTC

1. Credit Opinion: DECLINE
   CLEAR TECH SOLUTIONS LIMITED shows very limited financial substance and negative net current assets (£-3,667) despite minimal current assets (£478). The company is newly incorporated (July 2023) with no fixed assets and no employees, indicating it is likely at a pre-operational or start-up stage without meaningful trading or revenue. Current liabilities exceed current assets by a wide margin, signaling weak liquidity and inability to meet short-term obligations from available resources. Without a trading history or positive cash flows, the company currently lacks demonstrated capacity to service debt or credit facilities. The single director and 100% shareholder control by Mr. Sohaib Ali provides clear management accountability but offers no diversification or robustness in governance. Given these factors, the company’s credit risk is high and credit facility approval would be imprudent at this time.

2. Financial Strength:
   The balance sheet reflects a micro-entity with net liabilities of £3,667, driven by current liabilities of £4,145 that overshadow modest current assets of £478. There are no fixed assets or tangible capital investments. Shareholders’ funds are negative, indicating the company’s net worth is below zero, which is a weak financial position. The absence of operating assets and negative working capital points to fragile financial strength and limited buffer against unforeseen financial stress.

3. Cash Flow Assessment:
   Cash or cash equivalents appear negligible (£478) and are insufficient to cover current liabilities, which suggests liquidity issues. The lack of employees and fixed assets implies minimal operational activity and likely limited cash inflows. Without income, the company faces a working capital deficit, indicating poor short-term financial flexibility and a potential reliance on external funding or director loans. No historical cash flow data is available to assess trends, but the initial snapshot is weak.

4. Monitoring Points:

• Track changes in current assets and liabilities to assess improvement in working capital.
• Monitor filing of subsequent accounts for trading performance and profitability trends.
• Evaluate any capital injections or director loans that improve liquidity.
• Review director’s credit behavior and any new appointments that may enhance governance.
• Watch for any overdue filings or insolvency signals as the company matures.