Company Number: SC686385

Analysis Date: 2025-07-29 20:04 UTC

1. Risk Rating: LOW
   CMC Climate Ltd demonstrates a strong liquidity position with cash and current assets substantially exceeding current liabilities. The company shows positive net assets and shareholders’ funds with steady growth over recent years. There are no indications of overdue filings or legal issues.

2. Key Concerns:

• Deferred tax provision has doubled from £27,541 to £56,366, signaling potential tax timing differences that warrant monitoring.
• Hire purchase liabilities have increased notably, from £9,228 to £25,277, which although secured, increase financial obligations.
• The absence of an audited income statement limits insight into profitability and operational cash flows, requiring caution.

3. Positive Indicators:

• Strong net current assets of £537,798 and cash reserves of £495,781 at the latest year-end suggest good short-term liquidity.
• Net assets have grown from £231,042 in 2021 to £700,290 in 2024, indicating business growth and retained earnings accumulation.
• Timely filing of accounts and confirmation statements with no overdue returns evidences good regulatory compliance.
• Directors are stable and local with no public disqualifications or governance warnings.

4. Due Diligence Notes:

• Review underlying causes of deferred tax increase to assess future cash tax outflows.
• Assess terms and impact of hire purchase contracts on cash flow and asset encumbrance.
• Request or review management accounts or audited financials to understand profitability and cash generation.
• Examine related party transactions with CMC Fire & Security Ltd for any financial dependencies or risks.
• Confirm the nature of tangible fixed assets and their depreciation policy to evaluate asset quality and replacement needs.