CLOUD DATA ANALYTICS LTD

Executive Summary

CLOUD DATA ANALYTICS LTD exhibits a solid financial foundation with improving liquidity and equity, reflecting a healthy and growing business typical of a micro-entity IT consultancy. While it operates a lean model with no fixed assets, the company maintains strong short-term financial health and compliance. Strategic focus on profitability, working capital management, and operational resilience will support continued growth and sustainability.

CLOUD DATA ANALYTICS LTD - Analysis Report

Company Number: 13242763

Analysis Date: 2025-07-20 18:08 UTC

Financial Health Assessment Report for CLOUD DATA ANALYTICS LTD

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1. Financial Health Score: B

Explanation:
The company demonstrates a stable and improving financial position with solid net current assets growth and positive net assets over recent years. The absence of fixed assets and reliance on current assets may limit operational resilience but is typical for a micro-entity in IT consultancy. Overall, the company shows healthy liquidity and capital structure for its size, though there is room for strengthening profitability and asset base.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Fixed Assets	0	0	No long-term assets; business likely service-based.
Current Assets	34,158	20,359	Increasing cash or receivables indicate better liquidity.
Current Liabilities	10,521	5,938	Increased short-term obligations; manageable against assets.
Net Current Assets	23,637	14,421	Healthy working capital; good short-term financial buffer.
Total Net Assets	23,637	630	Strong improvement in equity; reflects retained earnings.
Share Capital	100	100	Minimal initial capital; typical for micro-entities.
Average Employees	1	1	Lean operation with low fixed overhead costs.

Interpretation:

• Liquidity ("Healthy Cash Flow"): The company’s current assets comfortably cover current liabilities, indicating it can meet short-term obligations without distress.
• Solvency ("Strong Equity Position"): A sharp rise in net assets suggests the company is building retained earnings or has injected funds, improving financial stability.
• Asset Structure ("Service-Oriented"): Zero fixed assets is typical for an IT consultancy but limits collateral for borrowing.
• Growth ("Positive Trend"): Year-on-year improvement in net assets and current assets signals business growth or improved management of receivables and payables.

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3. Diagnosis

CLOUD DATA ANALYTICS LTD presents a "healthy financial pulse" with no signs of distress. The company's liquidity ratios indicate it can comfortably cover its immediate debts, and the growth in net assets shows effective retention or capital injection. However, the lack of fixed assets suggests the company operates a low-capital model, typical for IT consultancy, relying on human capital rather than physical assets.

The steady increase in current liabilities alongside current assets suggests the company is managing working capital efficiently but should monitor short-term obligations to avoid liquidity crunches. The company employs only one person, indicating a lean cost structure but potential vulnerability if key personnel face issues.

There are no overdue filings or indications of financial or regulatory distress. The company is active and compliant with its reporting deadlines, which is a positive governance signal.

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4. Recommendations

1. Strengthen Profitability and Reserves:
   Continue to focus on increasing retained earnings to reinforce net asset growth, which will provide a buffer against future downturns.

2. Monitor Working Capital Closely:
   Maintain vigilance on receivables and payables to avoid any liquidity squeeze as liabilities have increased significantly.

3. Consider Building Asset Base:
   Although fixed assets are not critical in IT consultancy, consider investing in essential technology or software licenses that may increase operational efficiency and business value.

4. Plan for Business Continuity:
   Given the single-employee structure, develop contingency plans to mitigate operational risks related to key person dependency.

5. Explore Growth Opportunities:
   With a solid financial base, assess the feasibility of scaling operations by hiring additional staff or expanding service offerings to increase revenue.

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