CLICKINGMAD LIMITED
Company number 03933286 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Credit Assessment: CLICKINGMAD LIMITED
1. Credit Opinion: CONDITIONAL APPROVE
Clickingmad Limited presents a fundamentally sound credit profile underpinned by a 25-year trading history, consistent balance sheet growth, and conservative leverage. The company has grown net assets from £27,996 (2018) to £328,576 (2024) — an eleven-fold increase demonstrating strong retained profitability. However, the micro-entity filing regime severely limits visibility into profitability, cash generation, and the composition of both assets and liabilities. The significant shift in the balance sheet between 2023 and 2024 warrants clarification before full commitment.
Conditions for full approval: - Clarification of the £142,254 increase in fixed assets (from £49,130 to £191,384) - Breakdown of current liabilities (£100,915) — trade creditors vs tax vs HP/lease commitments - Confirmation of profitability and dividend policy from management accounts
2. Financial Strength
Balance Sheet Summary (2024 vs 2023):
| Metric | 2024 | 2023 | Change |
|---|---|---|---|
| Fixed Assets | £191,384 | £49,130 | +£142,254 (+289%) |
| Current Assets | £238,107 | £283,502 | -£45,395 (-16%) |
| Current Liabilities | £100,915 | £73,485 | +£27,430 (+37%) |
| Net Current Assets | £137,192 | £210,017 | -£72,825 (-35%) |
| Net Assets | £328,576 | £259,147 | +£69,429 (+27%) |
Gearing/Leverage: - Total liabilities to total assets: 23.5% (2024) vs 22.1% (2023) - Modest increase but remains conservative — well within acceptable parameters - No long-term liabilities visible on the balance sheet
Capital Position: - Share capital: £46,000 (unchanged) - Retained earnings: approximately £282,576 (implied from net assets less share capital) - Strong capital accumulation indicates profits are being retained rather than distributed
Net Asset Trajectory (10-year view):
| Year | Net Assets | YoY Growth |
|---|---|---|
| 2015 | £89,502 | — |
| 2016 | £73,432 | -18% |
| 2017 | £31,714 | -57% |
| 2018 | £27,996 | -12% |
| 2019 | £88,890 | +217% |
| 2020 | £143,185 | +61% |
| 2021 | £269,111 | +88% |
| 2022 | £253,786 | -6% |
| 2023 | £259,147 | +2% |
| 2024 | £328,576 | +27% |
The dip in 2017-2018 followed by strong recovery and sustained growth through to 2024 is encouraging. The business weathered that period and has since compounded growth effectively.
Key Concern — Fixed Asset Composition: The near-trebling of fixed assets is the most significant balance sheet movement. Without knowing whether this represents: - Freehold property (strong collateral value) - Plant and equipment (moderate collateral value) - Intangible assets/capitalised development (minimal collateral value)
...the quality of the asset base cannot be fully assessed.
3. Cash Flow Assessment
Working Capital Position: - Current ratio: 2.36x (2024) vs 3.85x (2023) - Quick ratio (estimating minimal stock): likely similar given the software/IT nature of the business - The decline in current ratio is notable but still healthy — the business maintains comfortable headroom
Implied Profitability: - Net asset growth of £69,429 (before any dividends) suggests retained profit of at least this amount - Given the fixed asset investment of £142,254, total operating cash generation was likely substantial (funding both capital investment and retained profit growth) - This implies a business generating healthy free cash flow
Liquidity Observations: - The reduction in current assets by £45,395 alongside the increase in current liabilities of £27,430 suggests cash was deployed into fixed assets, potentially funded through a combination of operating cash flow and increased creditor balances - If current liabilities include HP/lease commitments for fixed assets, this would be structurally normal but affects future cash flow obligations - No overdraft facilities or long-term debt visible — the business appears to operate with minimal external borrowing
Cash Flow Risk: - Software/IT consultancy businesses typically have favourable cash conversion cycles (low stock, prompt payment terms) - Recurring hosting revenues (SIC 63110) may provide annuity-style income streams - However, project-based work (SIC 62012, 62020) can be lumpy and client-concentration dependent
4. Monitoring Points
Immediate Clarifications Required: 1. Fixed asset composition — What does the £191,384 represent? Request a schedule of fixed assets 2. Current liability breakdown — Trade creditors, tax, HP/lease, accruals? Request aged creditor analysis 3. Profitability metrics — Obtain management accounts showing turnover, gross margin, and net margin 4. Dividend history — Are profits being extracted, or genuinely retained?
Ongoing Monitoring: 1. Current ratio trend — Watch for further deterioration below 2.0x 2. Fixed asset quality — If predominantly intangible, adjust risk assessment accordingly 3. Key person dependency — Sole director/shareholder creates continuity risk; consider key person insurance as a facility condition 4. Working capital management — Monitor debtor days and creditor days for signs of cash pressure 5. Revenue concentration — Understand client spread; software agencies can be vulnerable to key client loss 6. Filing compliance — Accounts are currently up to date; any slippage would be a red flag
Sector Considerations: - IT/software sector faces margin pressure from AI adoption and offshoring - Hosting revenues provide some resilience but require ongoing infrastructure investment - Regional operator (Shropshire-based) may have strong local relationships but limited scalability