CLOUDEST CONSULTING LIMITED

Executive Summary

Cloudest Consulting Limited is financially stable with strong equity growth and positive working capital, though a notable decline in cash reserves suggests a need for careful liquidity management. The company's increased fixed asset base points to growth investment, and prudent management of liabilities supports ongoing financial health. With continued focus on cash flow and receivables, Cloudest Consulting is well placed for sustainable development.

CLOUDEST CONSULTING LIMITED - Analysis Report

Company Number: 13629931

Analysis Date: 2025-07-20 18:46 UTC

Financial Health Assessment Report for Cloudest Consulting Limited

---

1. Financial Health Score: B

Explanation:
Cloudest Consulting Limited shows a generally healthy financial position with solid net assets and positive working capital. The business displays strong equity growth and adequate liquidity, but there are some mild symptoms of cash flow tightening compared to prior years. This suggests overall stability with room for improvement, particularly in managing current liabilities and cash reserves efficiently.

---

2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Fixed Assets	24,902	2,684	Significant investment in tangible assets, possibly for growth or operational capacity.
Current Assets	43,295	86,732	Reduced current assets mainly due to lower cash and debtors, indicating tighter liquidity.
Cash	32,011	65,351	Cash reserves halved year-over-year; watch for liquidity strain despite positive working capital.
Debtors	11,284	21,381	Debtors decreased significantly; possibly improved collection or lower sales on credit.
Current Liabilities	13,136	43,993	Current liabilities substantially reduced, easing short-term debt pressure.
Net Current Assets	30,159	42,739	Healthy positive working capital, though reduced, indicating sufficient short-term liquidity.
Net Assets	55,061	45,423	Increasing net assets reflect retained earnings and financial strengthening.
Shareholders’ Funds	54,961	45,323	Equity has grown, showing reinvestment and capital retention from profits.

Vital Sign Interpretation:

• Healthy cash flow is indicated by positive net current assets and growing equity, but the decline in cash reserves signals a possible "symptom of liquidity tightening."
• The company’s asset base is growing, especially fixed assets, which may indicate investment in long-term growth.
• Reduced current liabilities are a positive sign, lowering short-term financial stress.
• The decline in debtors and cash may reflect improved collections or changing sales patterns but could also indicate lower sales volume or delayed payments.

---

3. Diagnosis

Cloudest Consulting Limited is in a stable and improving financial condition. The company benefits from a strong equity base and positive working capital, akin to a patient with a robust immune system and no immediate signs of distress. The increased fixed assets investment suggests strategic expansion or operational strengthening.

However, the notable decrease in cash and current assets compared to the prior year acts like a "warning pulse" — the company should monitor liquidity closely to avoid cash flow crunches. The reduction in current liabilities suggests management has actively addressed short-term debts, which is a positive therapeutic step.

The company operates within the "small company" exemption framework, with no audit requirement, which matches its size and complexity. The single director is also the sole owner, simplifying governance but concentrating control.

---

4. Recommendations

• Strengthen Cash Reserves: Consider strategies to build cash buffers, such as negotiating better payment terms with clients or suppliers, to prevent liquidity stress.
• Monitor Debtor Days: Keep a close watch on debtors to ensure timely collections and avoid cash flow delays. A further reduction in outstanding receivables would be ideal.
• Asset Utilisation Review: Since fixed assets have increased substantially, assess whether these assets are efficiently contributing to revenue growth or if some are underutilised.
• Maintain Low Current Liabilities: Continue the good practice of managing short-term debts prudently to preserve healthy working capital.
• Prepare for Growth: With a solid equity base, the company is well-positioned to seek external funding or reinvest profits to scale operations if desired.
• Risk Management: Regularly review financial metrics for early signs of distress, especially cash flow variances, to act proactively.

---

Executive Summary

Cloudest Consulting Limited demonstrates a robust and improving financial state, characterized by growing equity and positive working capital, though with somewhat reduced cash reserves signaling a need for liquidity vigilance. The company’s investments in fixed assets indicate strategic growth, supported by prudent management of current liabilities. With focused attention on cash flow management and debtor collection, the company is well-positioned for stable future performance.