Company Number: 13116019

Analysis Date: 2025-07-20 11:04 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Clentran Limited demonstrates improving liquidity and a positive net asset position as of the latest financial year. However, the company remains a micro-entity with limited scale and a modest shareholder base, which constrains its financial resilience. The presence of director loans with no fixed repayment terms introduces some uncertainty in cash flow reliability. Approval is recommended with conditions including periodic review of liquidity and monitoring director indebtedness to ensure prompt repayment or restructuring.

2. Financial Strength:
   The balance sheet shows net assets of £19,367 at 31 January 2025, up slightly from £19,712 the prior year. Fixed assets decreased from £40,766 to £30,115, which may indicate asset disposals or depreciation. Importantly, net current assets improved significantly from a negative £21,054 in 2024 to a positive £15,367 in 2025, demonstrating an enhanced working capital position. The company carries long-term liabilities of £26,115, likely related to director loans, which impacts total net assets but does not currently appear to threaten solvency given the current asset coverage.

3. Cash Flow Assessment:
   Current assets of £48,467 comfortably exceed current liabilities of £33,100, indicating sufficient short-term liquidity to meet obligations. The turnaround from negative net current assets last year to positive this year suggests improved cash management or receivables collection. However, reliance on director advances (noted as creditor balances with no fixed repayment schedule) may mask underlying cash flow constraints. The absence of interest on these loans and no fixed repayment date could delay cash inflows needed for debt servicing.

4. Monitoring Points:

• Track the status and repayment schedule of director loans to avoid liquidity risk or potential related-party conflicts.
• Monitor net current assets quarterly to ensure working capital remains positive and sufficient for operational needs.
• Review fixed asset movements to understand capital expenditure or disposals which may affect future earnings capacity.
• Watch for any overdue filings or changes in company status that could signal operational or governance issues.
• Assess profitability trends once P&L data becomes available to confirm ongoing viability beyond balance sheet metrics.