Company Number: 14174718

Analysis Date: 2025-07-19 12:25 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   M T CLEAN LTD demonstrates modest but positive net current assets and net assets growth over the last two years, indicating some ability to meet short-term liabilities. However, the very low net assets of £465 (down from £12,620) and the absence of detailed profit and loss data limit confidence in sustained profitability and debt servicing capacity. Given the small scale and micro-entity status, the company appears to be in early stages of growth with increasing employee numbers, though liquidity and capitalization remain tight. Credit approval is recommended with conditions such as maintaining or improving working capital and periodic financial monitoring.

2. Financial Strength:
   The balance sheet shows net current assets of £24,587 as of 30 June 2024, which is a positive indicator of liquidity. However, net assets have declined sharply from £12,620 in 2023 to £465 in 2024, which may reflect increased accruals/deferred income or other timing factors in micro-entity accounting. Shareholders’ funds remain minimal, indicating limited capitalization. No fixed assets were reported, and the company is reliant on current assets (prepayments and accrued income) to cover short-term liabilities. The increase in employees from 2 to 4 suggests operational expansion but may strain finances if not matched by revenue growth.

3. Cash Flow Assessment:
   Direct cash flow data is not provided, but the balance sheet suggests working capital is positive though marginal. The company’s ability to convert accrued income/prepayments into cash is crucial to meet obligations. The significant increase in prepayments/accrued income from £12,260 to £24,587 could indicate either improved sales on credit or timing differences in revenue recognition. Overall liquidity appears adequate for current operations, but the low net asset base and minimal reserves caution against extended credit or large borrowing without further financial evidence.

4. Monitoring Points:

• Track net assets and shareholders’ funds progression to ensure capitalization improves.
• Monitor cash conversion cycle closely, especially collection of accrued income.
• Review employee costs relative to revenue to confirm sustainable growth.
• Ensure timely filing of accounts and confirmation statements to avoid regulatory risks.
• Assess any changes in deferred income/accruals that might impact future cash flows.