CLS EVENTS LTD

Executive Summary

CLS EVENTS LTD is a newly formed micro-entity with a negative net asset position and no trading history, posing a high credit risk. The company currently lacks financial strength and liquidity to support debt obligations, and approval for credit is not advised without further evidence of sustainable cash flow and profitability. Ongoing monitoring should focus on future financial performance and cash flow improvements.

CLS EVENTS LTD - Analysis Report

Company Number: 14812912

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

1. Credit Opinion: DECLINE

CLS EVENTS LTD is a newly incorporated micro-entity with minimal operating history and limited financial substance. The latest accounts show a negative net asset position (£-14,985) primarily due to high accruals and deferred income (£26,746) exceeding current assets (£11,761). There are no fixed assets and no current liabilities recorded, but the net liabilities and negative equity indicate weak financial footing. The company has only one employee (likely the director) and no trading history or revenue figures disclosed to demonstrate cash inflows. Given the absence of tangible financial strength and operating track record, the risk of default or inability to service debt is high. Approval for credit facilities is not recommended at this stage without further evidence of stable cash flow and profitability.

2. Financial Strength:

The balance sheet reveals a micro-entity with no fixed assets and current assets just covering a fraction of deferred income. The negative net asset value signals that liabilities (largely accrued/deferred income) exceed assets. Shareholders' funds are negative, reflecting accumulated losses or obligations. The lack of tangible equity and working capital cushions undermines the company’s ability to absorb financial shocks or invest in growth. The financial trajectory cannot be assessed due to the company's very recent incorporation and absence of comparative historic data.

3. Cash Flow Assessment:

Liquidity appears constrained. Current assets (£11,761) are limited and there is no evidence of cash or near-cash equivalents disclosed separately. The large accruals and deferred income suggest timing differences in revenue recognition or cash receipts. No current liabilities are shown, which may mean no short-term debts, but overall operating cash inflows are unclear. The single employee indicates minimal payroll burden, but without sales or cash flow data, working capital management remains uncertain. The company’s ability to generate positive cash flows to meet debt servicing or operational expenses is unproven.

4. Monitoring Points:

• Future annual accounts filings to track revenue generation, profitability, and equity position.
• Cash flow statements to assess liquidity trends and working capital management.
• Changes in deferred income and accruals to clarify revenue recognition and cash receipt timing.
• Any credit facility usage and repayment performance.
• Management actions to strengthen balance sheet — e.g., capital injections or asset acquisitions.
• Market conditions for conference and exhibition organizing as potential revenue drivers.