Company Number: 13145865

Analysis Date: 2025-07-20 14:38 UTC

1. Risk Rating: MEDIUM
   While Cloud 99 Ltd maintains positive net assets and no current liabilities, the significant decline in turnover in the latest financial year and relatively small asset base raise concerns about ongoing operational stability and revenue generation.

2. Key Concerns:

• Declining Revenue: Turnover decreased sharply from £417,818 (2023) to £170,890 (2024), indicating potential loss of clients or contracts that could affect cash flows and profitability.
• Concentration Risk: The company operates as a micro-entity with only one reported employee and two persons with significant control holding equal shares and voting rights, which could pose governance and continuity risks.
• Limited Financial Cushion: Current assets and net assets are modest (£1,350 and £2,700 respectively), with no current liabilities, but the low asset base may restrict the company’s ability to absorb shocks or finance growth.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statement are up to date, indicating regulatory compliance and good governance practices.
• Profitability Maintained: Despite the drop in turnover, the company recorded a small profit (£12,515) in the latest period, showing operational control over costs.
• No Short-Term Debt: Absence of current liabilities reduces immediate solvency risk and suggests manageable short-term obligations.

4. Due Diligence Notes:

• Investigate reasons behind the turnover decline—whether temporary or structural—and assess client concentration and contract pipeline.
• Review cash flow statements and bank balances (not provided) to evaluate liquidity beyond balance sheet figures.
• Confirm director and PSC backgrounds, given the small ownership and control structure, to assess governance robustness and potential related-party transactions.
• Verify employee count and operational capacity, as only one employee is reported for a business described as a nursing care agency supplying staffing.
• Examine market position and competitive environment in the temporary employment agency sector to gauge sustainability.