Company Number: 12617938

Analysis Date: 2025-07-29 16:56 UTC

1. Credit Opinion: CONDITIONAL APPROVAL

HAROLD CLEMENT LIMITED is an active private limited company operating in retail sale of cosmetic and toilet articles. The company has demonstrated a volatile financial position over recent years with fluctuating net assets and working capital. The latest financial year shows a significant improvement in net current assets (£51,412) and total net assets (£249,528) compared to the prior year negative figures. However, the company has a large creditor balance falling due after more than one year (£313,812), indicating long-term liabilities that require monitoring. The absence of employees and continued reliance on director control suggests a small-scale operation with limited operational complexity. Given the recent positive turnaround but material external liabilities, credit should be extended conditionally with regular review of liquidity and debt servicing capability.

2. Financial Strength:

• Fixed assets are modest but stable (£12,872 in 2024).
• Current assets increased to £60,457 in 2024 from £52,735 in 2023.
• Current liabilities dropped sharply from £409,800 in 2023 to £9,045 in 2024, improving working capital from negative £357,065 to positive £51,412.
• Long-term creditors totaling £313,812 emerged in 2024, representing a significant financial obligation.
• The company’s net assets improved to £249,528, indicating an overall stronger balance sheet position.
• Share capital remains nominal at £1, reflecting a typical micro-entity structure.
• The company’s financial strength is recovering but remains constrained by sizeable long-term debt.

3. Cash Flow Assessment:

• No explicit cash or cash equivalents disclosed in the latest accounts, but current assets imply some liquidity.
• The dramatic reduction in current liabilities has improved working capital and short-term liquidity.
• The company has no employees, indicating low overhead costs, which may aid cash conservation.
• The presence of significant creditors due after one year requires verification of repayment terms and cash flow projections to assure ongoing debt service capacity.
• Overall, liquidity appears improved but dependent on managing long-term liabilities and maintaining operational cash inflows.

4. Monitoring Points:

• Continuous tracking of creditor balances, especially the long-term debt of £313,812, to ensure scheduled repayments are met.
• Monitoring net current assets and liquidity ratios to detect any deterioration in short-term financial health.
• Review of trading performance and cash generation since no employee headcount suggests a very lean operation.
• Watch for any changes in director appointments or ownership structure that might impact management stability.
• Verify timely filing of future accounts and confirmation statements to maintain compliance.