Company Number: 13618664

Analysis Date: 2025-07-20 15:58 UTC

Financial Health Assessment for CLOUDBOOSTA TECHNOLOGY SOLUTIONS LTD

---

1. Financial Health Score: B-

Explanation:
The company shows a positive net asset position and working capital in the latest financial year, indicating a stable financial footing. However, the micro-entity status, minimal asset base, and relatively tight current ratio suggest some fragility and limited financial buffer. The score reflects a generally healthy but cautious position, with room for strengthening liquidity and capital reserves.

---

2. Key Vital Signs

Metric	2023 Value	Interpretation
Current Assets	£93,260	Healthy level of short-term assets (cash, receivables) indicating some liquidity.
Current Liabilities	£81,777	Significant short-term obligations; close to current asset size, suggesting liquidity risk.
Net Current Assets	£11,483	Positive working capital, but relatively narrow margin; a "healthy pulse" but not robust.
Net Assets (Equity)	£11,483	Positive shareholder funds indicate solvency and retained earnings or capital injection.
Average Number of Employees	2	Small staff base consistent with micro-entity status.
Account Category	Micro	Minimal filing requirements, limited scale, and modest financial complexity.

---

3. Diagnosis

The company's financial "vital signs" suggest a generally stable yet vulnerable condition. The presence of positive net current assets is akin to a "healthy heartbeat," showing the company can cover its short-term debts with current assets. However, the narrow margin here is a symptom of limited liquidity buffer, which could be risky if unexpected expenses or revenue shortfalls occur.

The net assets position is positive and stable, indicating the company is solvent and has some retained capital. Comparing 2022 to 2023, there was a significant improvement from negative net assets to positive, signaling recovery or capital infusion—an encouraging sign.

The business is small (micro-entity) and young (incorporated in 2021), which means it is still in an early growth phase. The industry mix—educational support services and IT consultancy—may provide diverse revenue streams but also requires careful cash flow management.

Overall, the company does not exhibit signs of financial distress but should be mindful of maintaining and improving liquidity and capital adequacy to support growth and absorb shocks.

---

4. Recommendations

• Strengthen Liquidity Reserves: Aim to increase current assets relative to current liabilities to build a more comfortable working capital buffer. This could involve accelerating receivables collection, reducing short-term debt, or holding more cash reserves.

• Monitor Cash Flow Closely: Implement robust cash flow forecasting and management practices to anticipate potential liquidity crunches, especially given narrow working capital margins.

• Capitalize on Growth Opportunities: Consider reinvesting profits or seeking additional equity investment to bolster net assets and support expansion, reducing the fragility linked to micro-entity scale.

• Maintain Rigorous Cost Control: Keep operating expenses aligned with revenues to preserve profitability and avoid liquidity stress.

• Regular Financial Health Checkups: As the company grows, periodic reviews of financial metrics (liquidity ratios, solvency, profitability) will help detect early symptoms of distress and guide proactive management.

• Governance and Compliance: Ensure timely filing of accounts and returns (currently on track) to avoid penalties and maintain good standing.

---