S CLARKE LOGISTICS LTD

Executive Summary

S Clarke Logistics Ltd is an early-stage micro company with a fragile financial position characterized by negative working capital and minimal net assets. The current financials indicate limited ability to service debt or sustain commercial credit exposure. Close monitoring of future financial performance and improvements in liquidity are essential before reconsidering credit approval.

S CLARKE LOGISTICS LTD - Analysis Report

Company Number: 14848973

Analysis Date: 2025-07-29 20:08 UTC

1. Credit Opinion: DECLINE
   S Clarke Logistics Ltd is a newly incorporated micro-entity with minimal financial history and currently exhibits weak balance sheet health. The company shows negative net current assets (£-4,400) and very low net assets (£331), indicating limited financial cushion and working capital to meet short-term obligations. The presence of significant long-term creditors (£9,066) relative to net assets further stresses financial stability. Given the limited operating history and negative working capital, the company’s ability to service debt or meet commercial credit terms is currently constrained, warranting a decline for credit facilities at this stage.

2. Financial Strength:
   The balance sheet presents fixed assets of £14,199 and current assets of £14,628 against current liabilities of £19,028, resulting in net current liabilities. Total liabilities exceed current assets, and net assets stand at a marginal £331. This thin equity base reflects very limited retained earnings or capital injection beyond initial share capital. The company’s gearing and solvency position cannot be fully assessed due to absence of profit and loss data, but the negative working capital and small net asset figure point to fragile financial strength.

3. Cash Flow Assessment:
   The negative net current assets suggest ongoing liquidity constraints, with current liabilities exceeding readily available current assets. The company employs only one person, implying low operational scale and potentially low cash inflows. Without evidence of positive cash flow generation or cash reserves, the risk of cash flow shortfall to meet liabilities is elevated. The absence of audit and limited disclosures further heighten uncertainty around cash flow adequacy.

4. Monitoring Points:

• Future filings for turnover, profitability, and cash flow to assess operational viability and debt servicing capacity.
• Changes in working capital management especially current assets and liabilities levels.
• Any material increase in equity or reduction in long-term creditors that would strengthen the balance sheet.
• Director’s track record and transparency in financial reporting as business evolves.