Company Number: SC749171

Analysis Date: 2025-07-20 19:15 UTC

1. Credit Opinion: DECLINE

KLAWD Group Ltd demonstrates significant financial weakness and limited capacity to service debt obligations. The company shows net current liabilities of £193,862 and net liabilities of £7,798 as at 31 March 2024, indicating a negative net asset position. The substantial current liabilities relative to cash and current assets reflect liquidity stress. The absence of turnover and employees further questions operational cash generation and sustainability. Given these factors, and the company's very recent incorporation with only one financial period reported, there is heightened risk and uncertainty regarding creditworthiness.

2. Financial Strength:

The balance sheet reveals fixed tangible assets of £186,064, primarily land and property, with a revaluation reserve of £45,000 contributing positively to net assets. However, the company’s current liabilities are £205,947, far exceeding current assets of £12,085, resulting in a negative working capital position of £193,862. Shareholders’ funds are negative at £7,798, mainly due to accumulated losses of £52,898. The company’s capital base is thin (only £100 share capital), and the negative equity signals financial distress and limited buffer to absorb losses.

3. Cash Flow Assessment:

Cash holdings stand at £12,085, which is minimal relative to current liabilities of £205,947. This indicates poor liquidity and potential difficulties in meeting short-term obligations. The company does not report turnover or any operating income, implying an inability to generate internal cash flows to support working capital needs. Without operating cash inflows, the business is reliant on external funding or asset disposals to service liabilities. The negative net current assets highlight a working capital deficit that undermines short-term financial resilience.

4. Monitoring Points:

• Liquidity improvements: Monitor cash flow statements and current ratio in subsequent periods to assess if current liabilities are being managed or reduced.
• Profitability and revenue generation: Track any turnover development and operating profit to evaluate operational viability.
• Debt structure and creditor payments: Watch for changes in creditor terms or defaults, as high short-term liabilities pose refinancing risks.
• Equity position: Observe changes in net assets and reserves to determine if capital injections or losses improve or worsen.
• Director and shareholder activities: Given sole control by Mrs. Melissa Paterson, monitor related party transactions or financial support commitments.