THE CLIC IT GROUP LTD

Executive Summary

THE CLIC IT GROUP LTD is financially healthy with strong liquidity and solvency indicators for its size and age. The company has successfully grown its asset base and equity within two years of operation, reflecting sound management. Focused investment in fixed assets and careful cash flow monitoring will support sustainable growth and operational resilience.

THE CLIC IT GROUP LTD - Analysis Report

Company Number: 13826035

Analysis Date: 2025-07-20 13:39 UTC

Financial Health Assessment: THE CLIC IT GROUP LTD

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1. Financial Health Score: B

Explanation:
THE CLIC IT GROUP LTD demonstrates a solid financial foundation for a young micro-entity in the construction sector, with healthy net current assets and positive shareholders' funds. The company’s balance sheet reflects a growing asset base and prudent management of liabilities, indicating good financial vitality for its stage of development. However, limited operating history and minimal fixed assets temper the rating, suggesting room for improvement in asset utilization and capital investment.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	3,328	Small but a positive sign of investment in long-term assets.
Current Assets	63,540	Healthy liquidity position, strong cash and receivables.
Current Liabilities	26,376	Manageable short-term obligations; less than half current assets.
Net Current Assets	37,164	Positive working capital indicating ability to cover short-term debts.
Total Assets Less Current Liabilities	40,492	Strong net asset position, reflecting overall solvency.
Shareholders’ Funds	40,492	Equity fully supports the company’s net asset base.

• Liquidity: The company shows a "healthy cash flow" symptom with current assets significantly exceeding current liabilities, reducing risk of short-term cash strain.
• Solvency: Positive net assets and shareholders’ funds signal good solvency and financial stability.
• Asset Base: Fixed assets are minimal, common for a micro-sized construction company, but some investment in equipment or property is evident.
• Growth Indicators: Compared to previous years, the jump from £1 net assets to over £40k reflects early growth and capital injection.

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3. Diagnosis

Overall Business Health:
THE CLIC IT GROUP LTD shows strong signs of financial wellness for a micro-entity in its second full year of trading. The "symptoms" of distress such as negative working capital or excessive liabilities are absent. The company has built a solid liquidity buffer and equity base, indicating resilience against short-term financial shocks. The business is in a growth phase, moving from nominal assets in early years to a more substantial financial footing.

Potential Concerns:

• Limited fixed assets may indicate reliance on subcontractors or limited operational capacity, which could restrict scaling.
• The company has only one employee (the director), which may impact operational capacity and workload management.
• As a construction business, careful monitoring of project cash flow cycles and debtor collection is crucial to maintain liquidity.

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4. Recommendations

To enhance financial wellness and support sustainable growth:

1. Strengthen Asset Base:
   Consider investing further in fixed assets or tools to improve operational efficiency and long-term capacity. This can help reduce reliance on external subcontractors and improve margins.

2. Cash Flow Management:
   Maintain vigilant monitoring of receivables and payables to sustain healthy working capital. Construction businesses often face payment delays; proactive credit control will prevent liquidity crunches.

3. Build Financial Reserves:
   As profits accumulate, build cash reserves to cushion against industry cyclicality or unforeseen expenses, enhancing financial stability.

4. Strategic Growth Planning:
   Develop a growth plan involving potential recruitment or partnerships to expand operational capacity and diversify revenue streams.

5. Regular Financial Review:
   Continue timely filing and review of accounts to monitor financial performance trends and identify early warning signs.

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