Company Number: 13137498

Analysis Date: 2025-07-29 21:04 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   CLOUDMEDIUM LTD is a micro-entity IT consultancy company with limited financial history since incorporation in 2021. The company shows modest net assets (£3,253 at 31/01/2024) but persistent net current liabilities indicating working capital pressure. The negative net current assets position worsened from -£504 in 2023 to -£2,045 in 2024, signaling liquidity constraints. However, the directors hold significant control and appear actively involved, with slight growth in current assets but also increased liabilities. Given the micro-entity status, limited scale, and working capital deficits, credit facilities could be considered on a conditional basis, emphasizing close monitoring and possibly secured or short-term limits.

2. Financial Strength:
   The balance sheet shows a stable but small fixed asset base (~£5,200) and slight growth in current assets (£23,211 to £29,938). The company’s net assets declined from £4,690 to £3,253, reflecting increased creditors. Shareholders' funds remain positive but very modest. The recurring net current liability position suggests the company is relying on short-term creditor financing to fund operations, which could be a risk if suppliers demand quicker payment or if cash inflows slow. The company’s micro status and small capital base limit its financial resilience to shocks.

3. Cash Flow Assessment:
   The negative net current assets indicate the company has insufficient liquid assets to cover short-term liabilities, which may stress liquidity. No detailed cash flow statements are provided, but the trend shows an increase in current liabilities outpacing current assets growth. With an average of 3 employees, operating expenses are likely moderate but must be managed carefully. The company should maintain tight working capital controls and possibly seek external liquidity support to avoid payment delays.

4. Monitoring Points:

• Track net current assets and liquidity ratios closely each period to detect worsening working capital issues.
• Monitor creditor aging and payment practices to ensure no overdue payables develop.
• Review turnover and profitability trends (not provided here) to confirm operational cash generation.
• Watch for any changes in director control or governance that might impact financial stewardship.
• Confirm timely filing of accounts and returns to avoid compliance risks.