CLIGGA DEVELOPMENTS LTD

Executive Summary

Cligga Developments Ltd has evolved from negative net asset position to a solidly positive financial footing with strong liquidity and manageable liabilities. The company’s cash reserves and working capital provide confidence in short-term debt servicing capability, supporting a credit approval. Continued vigilance on profitability and cash flow trends is recommended given the cyclical nature of construction activities.

CLIGGA DEVELOPMENTS LTD - Analysis Report

Company Number: 12615297

Analysis Date: 2025-07-29 16:59 UTC

1. Credit Opinion: APPROVE with monitoring.
   Cligga Developments Ltd is a small private limited company in the construction sector with steady positive net assets and working capital over recent years. Despite some early losses, the company has demonstrated a turnaround to profitability and maintains a strong cash position, supporting its ability to meet short-term obligations. Directors have relevant industry experience, and there are no red flags such as overdue filings or director disqualifications. However, the company’s low share capital and reliance on cash reserves warrant ongoing monitoring of profitability trends and cash flow stability.

2. Financial Strength:
   The balance sheet shows a healthy improvement from negative net assets of approximately -£8k in 2021 to positive net assets of about £159k in 2024. Current assets, mainly cash (£399k in 2024), exceed current liabilities (£241k), providing net current assets of £159k, which means the company has sufficient short-term resources to cover liabilities. The absence of fixed assets since 2022 suggests limited capital investment or disposal of prior assets, which may affect long-term resilience but is not uncommon in project-based construction businesses. Shareholders’ funds have steadily grown, reflecting retained earnings and improved profitability.

3. Cash Flow Assessment:
   High cash balances relative to liabilities indicate strong liquidity and good working capital management. Debtors remain minimal (£368 in 2024), reducing credit risk and suggesting prompt collections. Current liabilities have decreased from £351k in 2021 to £241k in 2024, showing improved creditor management or reduced short-term debt. The company’s ability to maintain cash near £400k demonstrates capacity to service debt and operational expenses comfortably.

4. Monitoring Points:

• Profitability trends in forthcoming periods to ensure continued positive retained earnings growth.
• Cash flow consistency, especially given construction sector volatility and project-based revenue recognition.
• Current liabilities management to avoid sudden spikes impacting liquidity.
• Any material changes in fixed assets or capital expenditure that could affect financial flexibility.
• Continued compliance with filing deadlines and corporate governance standards.