FLUIDSTACK CLOUD LTD

Executive Summary

Fluidstack Cloud Ltd is a newly incorporated small private company with a strong net current asset position driven primarily by intra-group receivables rather than liquid cash. While there are no regulatory or filing concerns, the company’s operational and liquidity risks are elevated due to concentration of assets in related party debts and minimal equity capital. Further due diligence on related party balances and underlying group financial health is recommended to assess going concern and operational sustainability.

FLUIDSTACK CLOUD LTD - Analysis Report

Company Number: 15055228

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

1. Risk Rating: MEDIUM
   Justification: Fluidstack Cloud Ltd is a very recently incorporated company (August 2023) with only one reporting period filed. The balance sheet shows strong net current assets primarily driven by a large debtor balance owed by a group undertaking, but operating cash is nominal (£1). The reliance on intra-group receivables and minimal equity capital (£1 share capital) poses some risk. No overdue filings or insolvency indicators are present, but limited operational history and financial detail constrain full risk assessment.

2. Key Concerns:

• Liquidity Concentration: Current assets of £5.82m are almost entirely debtors (£5.82m), with only £1 in cash, indicating very limited liquid funds to meet short-term obligations.
• Related Party Exposure: £5.19m of debtors owed by group undertakings suggests dependency on related entities for cash flow and financial support. This concentration risk could affect operational stability if group entities face difficulties.
• Minimal Equity and Operating History: The company has only one ordinary share issued (£1 nominal), and the entity is less than one year old. Limited track record and small equity base may increase vulnerability to market or operational shocks.

3. Positive Indicators:

• Strong Net Current Asset Position: Despite concentration risk, net current assets stand at £5.51m, indicating that the company’s short-term assets exceed liabilities by a significant margin.
• No Filing or Compliance Issues: All accounts and confirmation statements are filed on time, with no overdue status or regulatory concerns noted.
• Unqualified Audit Report: The statutory accounts have been audited with an unqualified opinion, adding credibility to the financial statements presented.

4. Due Diligence Notes:

• Verify the nature and collectability of the intra-group debtor balance (£5.19m) to assess real liquidity and credit risk.
• Understand the financial position and viability of the parent or related group companies to which the debtor amounts relate.
• Review cash flow forecasting and working capital management practices, especially given negligible cash on hand.
• Assess business model sustainability and revenue generation plans beyond reliance on related parties, considering the SIC code classification as "Web portals."
• Confirm director background and any potential conflicts of interest given the single director structure and group control.