CLICKBOX CONSULTING LTD

Executive Summary

Clickbox Consulting Ltd has experienced a sharp decline in financial strength and liquidity in its latest reporting period, raising concerns about its ability to service debt and sustain operations. The company’s minimal working capital and shrinking net assets suggest elevated credit risk. Credit extension is not recommended without evidence of financial recovery or additional support.

CLICKBOX CONSULTING LTD - Analysis Report

Company Number: 12917327

Analysis Date: 2025-07-20 13:39 UTC

1. Credit Opinion: DECLINE
   Clickbox Consulting Ltd shows a significant deterioration in financial strength and liquidity in the latest year (FY 2024). Net assets plunged from £84,899 in FY 2023 to £17,916 in FY 2024, and net current assets dropped sharply from £64,125 to just £1,190. This erosion of working capital raises concerns about the company’s ability to meet short-term obligations and service any new credit facilities. The dramatic decline in current assets (from £87,500 to £16,788) without a corresponding reduction in liabilities signals potential operational or cash flow issues. Given these indicators and the company’s micro-entity status with limited financial buffers, the risk of default or financial distress is elevated. Without clear mitigating factors or evidence of turnaround, extending credit is not advisable at this time.

2. Financial Strength:
   The company’s balance sheet weakened considerably in the most recent financial year. Fixed assets declined moderately, but the principal concern is liquidity—current assets fell by over 80%, drastically reducing net current assets. Low working capital of £1,190 leaves minimal headroom for day-to-day operations or unexpected expenses. Shareholders’ funds contracted substantially, reflecting accumulated losses or withdrawals. The company remains a micro-entity with minimal share capital (£1.00) and a sole director/employee, which limits operational scale and financial resilience.

3. Cash Flow Assessment:
   Liquidity is tight, with current liabilities (£15,598) almost equaling current assets (£16,788). This minimal buffer heightens risk of cash shortfalls. No details on cash or receivables composition are provided, but the sharp reduction in current assets suggests reduced cash inflows or increased working capital consumption. The company may face challenges in meeting creditor demands or funding operations without additional capital injection or improved cash management.

4. Monitoring Points:

• Track subsequent filings for any signs of recovery or further deterioration in net current assets and net assets.
• Monitor cash flow statements when available to assess operational cash generation.
• Watch for director changes or capital injections that might strengthen financial position.
• Review payment behavior and any arrears or defaults reported by suppliers or creditors.
• Consider industry trends in IT consultancy that may impact revenue stability.