CLOUDSERV LIMITED

Executive Summary

Cloudserv Limited is a micro-sized information technology consultancy with a stable but declining financial position. The company maintains positive net assets and low liabilities but is experiencing a notable reduction in current assets, which may impact liquidity. Credit is recommended on a conditional basis with emphasis on close cash flow monitoring and proactive management of working capital.

CLOUDSERV LIMITED - Analysis Report

Company Number: 14135007

Analysis Date: 2025-07-29 14:34 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Cloudserv Limited demonstrates a modest but stable financial position as a micro-entity. The company shows positive net current assets and net assets, indicating an ability to meet short-term obligations. However, the decline in current assets from £63,651 to £29,544 and net assets from £37,352 to £28,720 over the latest year signals a weakening liquidity position. The business is very small, with just one employee and limited operational scale, increasing risk exposure. Credit should be extended with conditions such as monitoring cash flow and ensuring no significant increase in liabilities to avoid liquidity strain.

2. Financial Strength:
   The balance sheet reveals total net assets of £28,720 as of 31 May 2024, down from £37,352 the prior year. Current liabilities are minimal (£824), so working capital remains positive (£28,720). The company holds no fixed assets and appears reliant on current assets likely comprising cash or receivables. The shareholder funds match net assets, indicating no long-term debt. Overall, the financial structure is simple and equity-funded but declining asset base warrants caution.

3. Cash Flow Assessment:
   Current assets declined substantially year-on-year, which may suggest reduced cash reserves or slower debtor collections. With only one employee and limited liabilities, cash outflows are likely low, but the shrinking asset base could impact liquidity if the trend continues. The minimal current liabilities mean short-term obligations are manageable currently. Monitoring the operating cash flow and receivables turnover will be key to ensuring ongoing liquidity.

4. Monitoring Points:

• Track monthly cash flow and working capital trends closely to catch any liquidity issues early.
• Watch for any increase in short-term liabilities or delayed debtor payments that could stress cash resources.
• Review management plans regarding growth or expenditure to understand if the asset decline is temporary or structural.
• Confirm continued compliance with filing deadlines and regulatory requirements to avoid penalties.