CML CLOUD SOLUTIONS LTD
Executive Summary
CML Cloud Solutions Ltd presents a low-risk profile based on its positive net asset base, strong liquidity, and compliance with filing obligations. The company’s micro-entity status and single director ownership are typical for its size but warrant attention regarding governance and operational continuity. Further review of director loans and underlying profitability will provide a more comprehensive risk assessment.
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This analysis is opinion only and should not be interpreted as financial advice.
CML CLOUD SOLUTIONS LTD - Analysis Report
Risk Rating: LOW
CML Cloud Solutions Ltd demonstrates a solid net asset position with positive working capital and no overdue filings. As a micro-entity with minimal liabilities and a single director-owner controlling 100% of shares and voting rights, the company appears financially stable and compliant with statutory requirements.Key Concerns:
- Reliance on a single director who is also the sole significant controller may create governance and succession risks.
- The director’s loan of £9,943, though unsecured and interest-free, represents a financial exposure that should be monitored.
- Limited scale as a micro-entity with only one employee may limit operational resilience and growth potential.
- Positive Indicators:
- Consistent increase in net assets from £32,272 in 2022 to £45,679 in 2023 indicates improving financial strength.
- Strong liquidity position with net current assets of £35,513 and current liabilities well covered by current assets.
- No overdue statutory filings, demonstrating good regulatory compliance and governance discipline.
- The company is active and operating in a growing sector (IT consultancy) with a clear SIC code classification.
- Due Diligence Notes:
- Review the nature and terms of the director’s loan to assess potential future cash flow impacts or related party risk.
- Confirm the sustainability of revenue and profitability trends beyond balance sheet figures, as P&L details are not provided.
- Investigate any plans for business scaling, diversification of management, or risk mitigation given the sole director structure.
- Verify the completeness of disclosures regarding contingent liabilities or off-balance-sheet risks, which are not apparent in the limited financial statements.
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