CLOCKWORK IT LIMITED

1. Risk Rating: MEDIUM

Based on the last detailed financial data available (period ending 14 November 2022), Clockwork IT Limited shows a strong solvency and liquidity profile: positive net assets, significant cash reserves, and liabilities well covered by cash. However, the absence of post-2022 financial detail, audit exemption subsidiary status, and inconsistent Persons with Significant Control (PSC) records introduce material transparency and governance uncertainty. The overall risk is therefore assessed as MEDIUM rather than LOW.

2. Key Concerns

• Stale financial information: The provided financial history ends on 14 November 2022. Although the company’s latest accounts are recorded as made up to 31 December 2024, the extracted accounts text appears to relate to an earlier period (referencing 2022 dates and a former officer). Current solvency, liquidity, and profitability cannot be verified from the available data.
• Audit exemption subsidiary and parent control: The company is classified as an “Audit Exemption Subsidiary.” This means it relies on a parent guarantee for audit exemption, reducing independent assurance. The PSC register lists Banyan Software UK Limited as owning more than 75% of shares, voting rights, and having the right to appoint/remove directors. Separately, Xxxxxx Xxxxxxxxname shown to subscribers is also listed as owning more than 75% of shares, which is inconsistent and requires clarification.
• No revenue or profitability data: The financial history contains only balance sheet items (total assets, liabilities, net assets, cash, shareholders’ funds). There is no turnover, profit, EBITDA, or cash flow information, making it impossible to assess operational performance, debt service capacity, or earnings quality.

3. Positive Indicators

• Strong balance sheet at last detailed date: As at 14 November 2022, net assets were £679,326, cash was £612,341, and total liabilities were £237,056. Cash alone covered liabilities approximately 2.6 times.
• Consistent growth in equity and cash: Net assets grew from £255,327 in 2016 to £679,326 in November 2022. Cash increased from £32,169 in 2019 to £612,341 in November 2022, indicating improved liquidity.
• Active and compliant: The company is active, incorporated in 2003, and has no overdue accounts or confirmation statements. Multiple current directors and a company secretary are in place.
• Established software business: The company operates in business and domestic software development (SIC 62012). XBRL tags in the accounts reference revenue contexts across the UK, Europe, North America, South America, Asia, and the rest of the world, suggesting international trading activity.

4. Due Diligence Notes

• Obtain and review the 2024 accounts (made up to 31 December 2024) to assess the current financial position, including cash, liabilities, net assets, and any parent guarantee disclosures.
• Clarify the PSC structure: determine the relationship between Banyan Software UK Limited and Xxxxxx Xxxxxxxxname shown to subscribers, and confirm ultimate beneficial ownership.
• Confirm the terms of the audit exemption under s479A of the Companies Act 2006 and whether a parent guarantee is in place.
• Check Companies House for any registered charges, mortgages, or debentures against the company.
• Review recent management accounts, revenue, profitability, and cash flow to assess operational sustainability.
• Investigate director history: Xxxxxx Xxxxxxxxname shown to subscribers appears in the accounts text but is not listed as a current officer. Verify his resignation date and any related-party transactions.
• Examine group structure and intercompany balances, as subsidiary status may involve material related-party dealings.
• Monitor filing deadlines: next accounts are due 30 September 2026 (for the period ending 31 December 2025), and the next confirmation statement is due 18 March 2027.

Names of the people mentioned are shown to subscribers. See subscription