Company Number: 13614994

Analysis Date: 2025-07-19 12:13 UTC

1. Credit Opinion: APPROVE
   Cloud To Ground Ltd demonstrates a solid financial position for a micro-entity with positive net assets and increasing equity over the past three years. The company shows strong working capital and low short-term liabilities relative to current assets, indicating adequate capacity to meet debt obligations. The director has maintained consistent control, and there are no adverse indicators such as overdue filings or director disqualifications. The industry (specialised construction activities) may have some cyclical exposure but the company’s balance sheet strength and liquidity mitigate immediate credit risk. Approval is recommended for standard credit facilities with monitoring.

2. Financial Strength:
   The company’s net assets increased from £27,442 in 2021 to £77,290 in 2024, reflecting steady equity growth. Fixed assets remain stable around £22k, indicating limited capital intensity. The increase in shareholders’ funds shows retained earnings accumulation and prudent financial management. Current liabilities have substantially decreased from £38,658 in 2023 to £5,508 in 2024, improving solvency. Long-term liabilities also declined, further strengthening the balance sheet. Overall, the financial structure is conservative with low gearing and healthy capitalization.

3. Cash Flow Assessment:
   Current assets are predominantly cash and debtors, with cash reported at £86,625 in 2023 and though reduced in 2024 to £64,905 total current assets, net current assets remain strong at £59,397. The company’s working capital position is robust, supporting liquidity to cover short-term obligations comfortably. The low level of current liabilities relative to current assets indicates solid operational liquidity. The average employee count is minimal (2), implying low fixed overheads, which enhances flexibility in cash flow management. No off-balance sheet liabilities were disclosed, reducing hidden risks.

4. Monitoring Points:

• Monitor cash balances and trade receivables aging to ensure ongoing liquidity.
• Watch for any increases in current or long-term liabilities that could pressure working capital.
• Track profitability trends once profit & loss data is available to confirm sustainable earnings growth.
• Keep an eye on any changes in director appointments or PSC control that may affect governance.
• Remain alert to industry conditions given exposure to specialised construction activities, which can be sensitive to economic cycles.