CLN UTILITY LTD

Executive Summary

CLN UTILITY LTD is a micro-entity with low turnover and minimal net assets but demonstrates consistent growth and compliance with filing requirements. While operational scale and capitalisation are limited, the company is profitable and shows no immediate solvency concerns. Further due diligence should focus on liquidity, business model sustainability, and governance given the company’s small size and reliance on a single director.

CLN UTILITY LTD - Analysis Report

Company Number: 13439773

Analysis Date: 2025-07-20 16:36 UTC

1. Risk Rating: LOW to MEDIUM
   The company is a micro-entity with minimal financial scale but shows consistent growth in turnover and positive net assets. There are no overdue filings or signs of insolvency. However, the very limited asset base and low capitalisation suggest some vulnerability in liquidity and operational scale.

2. Key Concerns:

• Limited Financial Scale: Turnover remains very low (£16,963 in 2024), with net current assets under £400, indicating limited buffer to absorb financial shocks or meet unexpected liabilities.
• Low Capitalisation: Share capital of only £1 and very small shareholders’ funds (£394) may restrict ability to raise funds or invest in growth.
• Single Director and Employee: Operational dependency on one individual (director and sole employee) may present continuity risks and governance limitations.

3. Positive Indicators:

• Consistent Filing Compliance: No overdue accounts or confirmation statements, reflecting good regulatory compliance.
• Increasing Turnover: Turnover has grown steadily from £297 (2021) to £16,963 (2024), suggesting some business development.
• Profitability: Small but positive profit margin in 2024 (£296 profit) shows the business is not operating at a loss.

4. Due Diligence Notes:

• Verify the nature of the company’s contracts and customer base given the low turnover but increasing trend.
• Review cash flow statements or bank records if available to assess liquidity beyond balance sheet snapshots.
• Understand the business model and scalability prospects, especially given the single employee/director and low asset base.
• Confirm no undisclosed liabilities or contingent risks not reflected in the micro-entity accounts.
• Assess the director’s background and capacity to manage and grow the company.