Company Number: 12587553

Analysis Date: 2025-07-29 14:55 UTC

1. Credit Opinion: APPROVE
   Cloud Master Limited demonstrates a solid financial position for a micro-entity with consistent growth in net assets and net current assets over the last four years. The company’s current liabilities are well covered by current assets, indicating a strong short-term liquidity position. There is no indication of financial distress or overdue filings, and the business operates in the IT consultancy sector, which tends to have steady demand. Management appears stable with one long-standing director, and no adverse conduct records are disclosed. The financials show prudent stewardship and a growing equity base, supporting the ability to meet debt obligations.

2. Financial Strength:
   The balance sheet reveals strengthening financial health. Net assets increased from £34,233 in 2020 to £97,753 in 2024, reflecting retained earnings and capital growth. The company’s leverage is moderate with £35,245 of long-term creditors against a net asset base of £97,753, which is manageable for a small IT consultancy. The company’s equity growth and positive working capital (net current assets of £132,998) indicate strong solvency and financial resilience.

3. Cash Flow Assessment:
   Current assets (£146,107) comfortably exceed current liabilities (£35,245), resulting in a net current asset position of £132,998. This suggests the company has adequate liquidity to meet short-term obligations without stress. The average employee count is stable at three, consistent with a micro-entity profile, implying manageable payroll and overhead expenses. While detailed cash flow statements are not provided, the working capital position and balance sheet trends imply effective cash management.

4. Monitoring Points:

• Maintain scrutiny on creditor terms and monitor any increase in long-term liabilities to ensure debt remains manageable.
• Watch for any significant changes in current assets, particularly cash and receivables, to detect liquidity risks early.
• Track revenue and profitability trends through future filings to confirm continued growth and earnings retention.
• Monitor director stability and any changes in company structure or PSC disclosures for governance risks.