CLEARSKY SOLUTIONS LIMITED
Executive Summary
Clearsky Solutions Limited is a small private company demonstrating a sound liquidity and solvency position with positive net asset growth and full compliance with filing requirements. While the scale of operations is minimal and control is concentrated among two directors, there are no immediate financial or regulatory red flags. Further review of related party transactions and business sustainability is advised to fully assess operational stability.
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This analysis is opinion only and should not be interpreted as financial advice.
CLEARSKY SOLUTIONS LIMITED - Analysis Report
Risk Rating: LOW
Clearsky Solutions Limited shows a positive net asset position with a small but adequate net current asset surplus, no overdue filings, and no indications of financial distress. The company has complied with filing requirements and demonstrates no signs of operational or regulatory issues.Key Concerns:
- Limited scale and activity: As a micro-entity with no employees and minimal fixed assets, the company’s operational scale is very small, which could limit business sustainability and growth prospects.
- Director advance: The company made a director advance (£2,188) during the year, which was repaid post year-end; while repaid, related party transactions should be monitored for governance and cash flow impact.
- Concentration of control: The two directors/shareholders each hold significant control (25-50%), indicating potential governance risk if disputes arise or if the business depends heavily on their direct involvement.
- Positive Indicators:
- Strong liquidity position: Current assets (£22,574) exceed current liabilities (£13,960), producing a net current asset surplus of £8,614, indicating the company can meet short-term obligations.
- Compliance: Accounts and confirmation statement filings are up to date with no overdue status, reflecting good regulatory compliance.
- Positive net assets growth: Net assets increased substantially from £2 in 2022 to £9,304 in 2023, showing growth in the company’s financial position over the period.
- Due Diligence Notes:
- Review the nature and timing of the director’s advance and repayment to confirm it was commercially reasonable and properly documented.
- Assess business model and revenue generation prospects given the lack of employees and minimal fixed assets to understand sustainability and potential growth.
- Confirm no related party transactions or other contingent liabilities exist that could impact liquidity or solvency.
- Verify that the company’s accounting records and controls are robust given the micro-entity status and single office location.
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