Company Number: 12635889

Analysis Date: 2025-07-29 15:25 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Clonebrother Design Ltd is a micro private limited company engaged in IT consultancy. The company is relatively young (incorporated 2020) but currently active and compliant with filing deadlines. The balance sheet shows positive net assets and working capital, indicating an ability to meet short-term obligations. However, the downward trend in net assets from £44,707 in 2019 to £14,817 in 2024, alongside declining current assets and fixed assets, signals a weakening financial position. The absence of audit and limited disclosure restricts insight into profitability and cash flow trends. Lending or credit extension may be considered with conditions such as monitoring financial performance closely and possibly securing additional collateral or guarantees.

2. Financial Strength:
   The company’s balance sheet reflects modest but positive net assets (£14,817 as of 31/12/2024), with current assets (£16,728) comfortably covering current liabilities (£1,648), resulting in positive working capital of approximately £15,080. However, there is a clear decline in fixed assets and shareholders’ funds over recent years (from £44,707 in 2019 to £14,817 in 2024), suggesting asset disposals, losses, or returns of capital. The capital base is minimal (£100 share capital). The company operates at a micro scale, limiting financial buffer capacity. Overall, the balance sheet is solvent but shrinking.

3. Cash Flow Assessment:
   Current assets include cash and receivables but exact cash balances are not disclosed. Positive net current assets indicate liquidity to cover short-term debts. However, the decline in current assets and the increase in accruals and deferred income (from £600 to £1,500) may hint at tighter cash flow management or deferred revenue recognition. The company employs one person (the director) which keeps overheads low. Without profit and loss data or cash flow statements, precise cash generation ability cannot be confirmed. Vigilance regarding receivables collection and expense control is advised.

4. Monitoring Points:

• Track upcoming annual accounts for profit/loss trends and cash flow statements when available.
• Monitor net asset levels to ensure no further erosion.
• Watch working capital adequacy relative to any credit exposure.
• Review director’s ability to maintain timely filings and governance compliance.
• Assess any changes in business scale or capital structure that might impact credit risk.