Company Number: 12727553

Analysis Date: 2025-07-29 15:56 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Three Clover Care Limited shows a marked improvement in financial position over the past two years, moving from marginal net assets to a solid net asset base of £15,403 as of July 2024. The company operates in social work and temporary employment agency sectors, which can be sensitive to economic shifts, but the current financials demonstrate reasonable resilience. However, current liabilities have increased significantly in 2024 (£32,440), which warrants careful monitoring. Approval is recommended with conditions tied to ongoing review of working capital management and receivables collection.

2. Financial Strength
   The company's balance sheet has strengthened notably: fixed assets increased to £9,328 from £2,175, indicating investment in tangible resources (motor vehicles and computer equipment). Current assets rose substantially to £38,515, driven by cash balance growth (£23,339) and trade debtors (£15,176). Net current assets are positive at £6,075, reversing a prior negative position. Shareholders’ funds improved from £62 to £15,400, reflecting retained earnings accumulation. Despite these positives, trade creditors and tax liabilities have grown sharply, which can pressure liquidity.

3. Cash Flow Assessment
   Cash at bank increased threefold year-on-year, suggesting improved cash generation or capital injection. However, trade creditors (£21,249) and tax/social security obligations (£10,191) constitute a large portion of current liabilities, indicating short-term obligations that must be managed carefully. Debtors are substantial but potentially collectible within a year, supporting liquidity. The net current asset position is comfortable but requires vigilance to ensure timely conversion of receivables and control of payables to avoid cash flow strain.

4. Monitoring Points

• Receivables aging and collection efficiency to guard against overdue debt and bad debts.
• Management of trade and tax creditors to prevent liquidity crunch or supplier disputes.
• Profitability trends and cash flow from operations in coming periods for sustainable debt servicing.
• Impact of any regulatory or sector-specific changes affecting social work and temporary employment activities.
• Continued investment in assets balanced against operational cash generation.