CLOVER INTERNATIONAL GROUP LTD

Executive Summary

Clover International Group Ltd is currently in a financially distressed position with negative net assets and insufficient liquidity to meet short-term liabilities. The company has experienced a significant deterioration in financial health over the last year, undermining its ability to service debt. Given the current financial data, credit approval is not recommended without substantial additional security or evidence of financial turnaround.

CLOVER INTERNATIONAL GROUP LTD - Analysis Report

Company Number: 13480673

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

1. Credit Opinion: DECLINE Clover International Group Ltd presents a weak credit profile primarily due to its deteriorated financial position at the latest reporting date. The company shows a significant net current liability of £14,364 with a negative net asset position of the same amount as of 30 June 2024, indicating insolvency on a balance sheet basis. The absence of trade debtors and minimal cash of only £309 suggest limited operational liquidity. The company has also experienced a sharp decline from positive net assets in prior years to a substantial deficit, reflecting losses or write-downs. Given these factors, the company currently lacks the financial strength and liquidity to comfortably meet debt obligations. No mitigating information such as forthcoming capital injections or turnaround plans is evident. Therefore, credit facilities cannot be recommended without substantial additional security or guarantees.

2. Financial Strength: The balance sheet reveals a precarious financial position with total current liabilities (£14,673) far exceeding current assets (£309). The net asset deficit (£14,364) and negative shareholders’ funds (£14,464) indicate erosion of equity capital. Declining net assets from a positive £100 in 2023 to negative in 2024 suggest accumulated losses or impairments. The company operates in a niche sector (human health and temporary employment activities) but shows no fixed assets or tangible capital to support operations. Overall, the financial strength is poor, reflecting solvency risks and limited buffer to absorb adverse events.

3. Cash Flow Assessment: Cash at bank is nominal at £309, with no reported trade debtors indicating weak working capital inflows and limited liquidity. The negative net current assets imply that short-term liabilities exceed the company’s ability to cover them promptly. The lack of receivables suggests either low sales volumes or collection issues, and the company’s cash generation is insufficient to cover immediate obligations. This poor liquidity position raises concerns about operational continuity without external funding.

4. Monitoring Points:

• Monitor the company’s cash flow statements and future filings for signs of improved liquidity or capital injection.
• Watch for any changes in current liabilities, especially short-term borrowings or overdue payables.
• Observe the turnover and profit trends in future accounts to assess business recovery or further decline.
• Track director changes and significant control shifts as these may indicate restructuring efforts.
• Review any new information on contingent liabilities or legal proceedings that could affect solvency.