CLOUDEX SKILLS LIMITED

Executive Summary

CLOUDEX SKILLS LIMITED shows solid early-stage financial health with positive net assets and liquidity, indicating good foundational stability. The company is well-positioned as a start-up but should focus on cash flow management, controlled growth, and strategic planning to sustain and improve its financial wellness. Continued compliance and governance diligence will support its ongoing operational success.

CLOUDEX SKILLS LIMITED - Analysis Report

Company Number: 14597522

Analysis Date: 2025-07-29 12:59 UTC

Financial Health Assessment for CLOUDEX SKILLS LIMITED

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1. Financial Health Score: B

Explanation:
The company demonstrates a stable financial foundation with positive net assets and working capital, indicating sound initial health for a recently incorporated business. However, given its very early stage and minimal financial scale, there is limited historical data to ascertain growth trends or resilience fully. The score reflects a generally healthy starting position but acknowledges the infancy and small scale of operations as areas requiring cautious monitoring.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Cash at Bank	4,503	Healthy cash reserves relative to current liabilities, indicating liquidity to meet short-term obligations.
Current Liabilities	3,475	Modest short-term debts; manageable given cash holdings and working capital.
Net Current Assets	1,028	Positive working capital suggests the company can comfortably cover its immediate liabilities.
Net Assets (Equity)	1,028	Positive net worth reflects that total assets exceed liabilities, a fundamental sign of financial stability.
Share Capital	2	Minimal initial share capital, typical for a new private limited company.
Profit and Loss Reserve	1,026	Indicates retained earnings or accumulated profits, suggesting early profitability or capital injections.
Employees	2	Small workforce consistent with micro/small company status, implying lean operations but also potential capacity constraints.

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3. Diagnosis: What the Financial Data Reveals About Business Health

CLOUDEX SKILLS LIMITED is a newly incorporated private limited company operating in the education support services sector. Its financial "vital signs" show a "healthy cash flow" status for a start-up, with sufficient liquidity to meet current obligations, reflected in positive net current assets. The modest level of liabilities and positive net assets indicate no immediate financial distress or solvency concerns.

The company’s financial statements are unaudited and abridged, which is typical for small companies, and therefore, while the data is reliable for basic health checks, it lacks the depth of audited accounts that might reveal subtler issues. The directors affirm a going concern basis, signaling confidence in ongoing operations and risk management.

The small share capital and low asset base are consistent with a start-up phase, while the presence of a profit and loss reserve suggests either some initial revenue generation or capital contributions beyond share capital. The very small employee base reflects lean beginnings but may limit scalability without further investment.

No overdue filings or compliance issues are noted, which is a positive sign for governance and regulatory adherence. The company is currently active, with no signs of financial distress such as administration or liquidation.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Cash Flow Management: Continue to monitor cash flow closely, ensuring liquidity buffers remain sufficient as the business scales. Early-stage companies often face cash flow volatility.

• Growth and Revenue Tracking: Develop detailed financial forecasting and budgeting processes to track sales growth and profitability trends. This will help identify symptoms of financial stress early.

• Capital Structure Review: Consider increasing share capital or securing external funding if growth requires investment in assets, staffing, or marketing to avoid over-reliance on short-term creditors.

• Cost Control: Maintain tight control on operational expenses, especially payroll and overheads, to preserve "healthy financial metabolism" as the company grows.

• Governance and Compliance: Maintain timely filings and transparent reporting to avoid penalties and maintain stakeholder confidence.

• Strategic Planning: Formalize a business plan with risk assessments and contingency plans to strengthen confidence in the going concern assumption.

• Employee Investment: As the business grows, invest in human capital to build operational capacity, which is critical for scaling education support services.

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