Company Number: 13286064

Analysis Date: 2025-07-19 13:03 UTC

1. Credit Opinion: APPROVE with caution

Clear Blue Consulting Ltd shows positive growth and improved financial position over the last financial year. The company is a micro-entity with minimal complexity and no overdue filings, which indicates compliance and basic operational stability. However, the company is relatively young (incorporated in 2021) and small, with only 2 employees, which suggests limited operational scale and possibly limited diversification of revenue streams. The credit approval is conditional on continued monitoring of financial performance and liquidity, given the early stage of the business and relatively modest net assets.

2. Financial Strength

The balance sheet shows a marked improvement from the previous year to 2023. Current assets increased substantially from £9,795 to £211,089, while current liabilities also rose significantly from £1,751 to £170,659. Despite this, the company maintains positive net current assets (working capital) of £40,430 and net assets (shareholders’ funds) of £31,230 as of 23rd Sept 2023, up from £7,564 in 2022. This growth in equity indicates retained earnings or capital injection. The company’s fixed asset position is not disclosed explicitly but implied to be minimal, consistent with its micro category. Overall, the balance sheet is healthy for a micro-entity, with positive net assets and no indication of insolvency risk.

3. Cash Flow Assessment

The liquidity position is adequate but requires attention. Current assets largely comprise cash or equivalents given the large increase, but current liabilities have increased sharply, suggesting possible short-term obligations that need to be managed carefully. The net current assets of £40,430 provide a buffer, but the working capital ratio is approximately 1.24 (211,089/170,659), which is acceptable but not robust. With only 2 employees and a focus on business support services, operating cash flow should be manageable, but the company should maintain tight control over payables and receivables to avoid liquidity strain.

4. Monitoring Points

• Continued growth in revenues and profitability to sustain or increase net assets and working capital.
• Management of short-term liabilities to prevent liquidity pressure.
• Stability of client base given the small size and limited employee count.
• Monitoring director changes and control structure, noting that one director resigned in March 2023 and the other two are actively managing.
• Watch for any significant changes in payment terms from suppliers or customers that could affect cash flow.
• Timely filing of accounts and confirmation statements to maintain good compliance standing.