Company Number: 13646191

Analysis Date: 2025-07-29 14:03 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Clio Eckersley Tutoring Ltd shows a marked financial turnaround in the latest year, moving from net liabilities of £4,102 in 2023 to net assets of £2,255 in 2024. However, the company is very small (micro category) with minimal fixed assets and limited scale, and it operates with a single employee/director. The improvement suggests better working capital management and operational control, but the small asset base and prior losses indicate some vulnerability. Credit approval is advised on condition of continued monitoring of liquidity and cash flow, with conservative limits to reflect the company’s early stage and modest financial resilience.

2. Financial Strength:
   The balance sheet shows net current assets improving from a negative £2,841 in 2023 to a positive £3,513 in 2024. Total net assets moved from negative to positive, reflecting accumulation of retained earnings or injection of capital. Fixed assets are negligible (£38), indicating reliance on current assets (primarily cash/debtors) to support operations. The company’s shareholders’ funds are modest (£2,255), which while positive, signify limited financial buffer against adverse events. Overall, the balance sheet is stable but thinly capitalized.

3. Cash Flow Assessment:
   Current assets of £23,478 against current liabilities of £19,965 provide a current ratio of about 1.17, indicating adequate short-term liquidity. The positive net current assets and improved working capital position demonstrate the company’s ability to meet short-term obligations. However, the relatively small absolute cash and working capital figures require careful management of cash flows. There is no detailed P&L or cash flow statement available, so cash generation capacity and seasonality remain unknown.

4. Monitoring Points:

• Continued improvement or stability in net current assets and net profitability.
• Timely filing of accounts and confirmation statements to ensure compliance.
• Any changes in director or ownership structure that might affect governance.
• Cash flow trends and ability to maintain positive working capital given small scale.
• Any expansion or diversification of business activities that might impact risk profile.