CLEARDROP CONSULTING LTD

Executive Summary

ClearDrop Consulting Ltd is a micro entity showing a significant decline in financial strength and liquidity over the past year, with net current assets barely covering liabilities. While the company remains active and compliant, its ability to service debt is currently constrained. Credit exposure should be limited and regularly reviewed until financial improvements are evidenced.

CLEARDROP CONSULTING LTD - Analysis Report

Company Number: 13283044

Analysis Date: 2025-07-29 17:43 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   ClearDrop Consulting Ltd is a micro private limited company active in management consultancy and IT consultancy. The company shows very modest net current assets (£201 as of 31 May 2025), a drastic decline from prior years (e.g., £10,236 in 2024 and £15,507 in 2021). This sharp reduction signals a significant deterioration in liquidity and working capital, raising concerns about the company's ability to meet short-term obligations without external support. However, the company is still active and has no overdue filings, indicating compliance with statutory requirements. The director has advanced £3,000 to the company, which may reflect some capital support from management. Given the limited scale and recent financial weakening, credit exposure should be limited and monitored closely. Approval may be granted with the condition of regular financial updates and caps on exposure.

2. Financial Strength:
   The balance sheet shows a significant shrinkage in total assets less current liabilities from £38,076 in 2024 to £201 in 2025. Fixed assets have been fully written off or disposed (from £27,840 to £0), and current assets have dropped substantially from £25,651 to £5,883. Current liabilities remain high relative to current assets (£5,682), resulting in minimal net current assets of £201. Shareholders’ funds are also minimal at £201, indicating very limited equity buffer. The company’s financial position is weak and has seen a rapid decline, which undermines its financial strength and resilience.

3. Cash Flow Assessment:
   The company’s working capital is almost negligible. Current liabilities are almost equal to current assets, leaving little liquidity to cover short-term debts. The absence of fixed assets and low net assets suggest limited collateral or reserves. Without positive cash flow or improved working capital, the company may struggle to meet creditor demands or fund operations. The director’s personal advance of £3,000 could be a sign of cash flow support, but reliance on director loans is not sustainable. There is no indication of employees, which may reduce payroll liabilities but also implies limited operational scale.

4. Monitoring Points:

• Track quarterly cash flow and working capital to detect further liquidity deterioration.
• Review any changes in current liabilities or director loans.
• Monitor compliance with filing deadlines and any changes in company status or director appointments.
• Assess ongoing revenue generation and profitability trends once available.
• Watch for any material changes in fixed assets or equity injections.