Company Number: 12941038

Analysis Date: 2025-07-29 20:20 UTC

1. Credit Opinion: APPROVE
   Cloudsta Ltd demonstrates a solid and improving financial position with consistent growth in net assets and working capital. The company operates within a low-risk micro-entity profile and maintains positive net current assets, indicating good short-term liquidity. The absence of overdue filings and the stable director presence support confidence in management quality. Given the company’s positive financial trajectory and liquidity position, it is capable of meeting its debt and commercial obligations.

2. Financial Strength:
   The company’s net assets have grown substantially from £31,705 in 2020 to £117,853 in 2024, reflecting strong capital retention and profitability. Fixed assets increased steadily to £51,443, supporting operational capacity. Net current assets rose to £67,190, indicating a healthy working capital buffer. The balance sheet is well structured with minimal short-term liabilities (£16,529) relative to current assets (£83,719), suggesting low leverage risk.

3. Cash Flow Assessment:
   Current assets largely consist of liquid or near-liquid assets (including cash), supporting adequate liquidity. The increase in net current assets over recent years signals improving working capital management and cash flow generation. No signs of liquidity stress or dependency on external financing are evident. The company’s ability to cover current liabilities by over five times (current assets to current liabilities ratio) points to strong short-term cash flow resilience.

4. Monitoring Points:

• Monitor accounts receivable and payable cycles to ensure continued strong liquidity.
• Watch for any significant increases in liabilities or changes in working capital dynamics that could affect cash flow.
• Track revenue growth and profitability trends as filings for micro-entities provide limited detailed P&L data.
• Confirm ongoing compliance with filing deadlines to mitigate regulatory risk.