Company Number: 13951954

Analysis Date: 2025-07-20 14:07 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   CLIPEUM IT (BETA) LTD shows weak liquidity and a negative net asset position, indicating financial strain. Current liabilities exceed current assets by over £1.17 million, and the company carries net liabilities of £40,127. However, the company is supported by a related party (parent company or group), which has provided ongoing financial backing, and the director confirms a going concern basis. This external support is critical for stability. Credit approval is conditional on continued related-party support, monitoring of liquidity, and further clarity on operational cash flow generation.

2. Financial Strength:
   The balance sheet reveals significant leverage with current liabilities (£1.37m) far exceeding current assets (£197k), resulting in a working capital deficit of £1.17m. Long-term creditors also remain substantial (£644k). The company holds investments in a subsidiary valued at £1.78m, but this is offset by significant liabilities, resulting in net liabilities of £40,127. Shareholders’ funds remain negative, reflecting accumulated losses. The company's financial position is fragile and highly dependent on group support and the value of subsidiary investments.

3. Cash Flow Assessment:
   Cash on hand increased from £34.9k in 2022 to £82.7k in 2023 but remains low relative to current liabilities. Debtors rose to £114.5k but still do not provide sufficient short-term liquidity. The large overdraft or short-term borrowings (reflected in creditors due within one year) signal cash flow pressure. The company relies heavily on intercompany funding (£928k owed to group undertakings), which is critical to meet short-term obligations. Without continued group support or operational cash inflows, liquidity risk is high.

4. Monitoring Points:

• Continued related-party funding and the company’s ability to convert investments into cash or profits.
• Working capital improvements and reduction in current liabilities.
• Operational cash flow trends and debtor collection efficiency.
• Any changes in subsidiary performance impacting investment value.
• Director changes and governance practices, noting the recent appointment of a new director in August 2024.