Company Number: 14573759

Analysis Date: 2025-07-29 19:00 UTC

1. Credit Opinion: DECLINE

ABA CLEANING SERVICES LTD is a newly incorporated micro-entity (since 2023) operating in the cleaning services sector. Its latest filed accounts to 31 January 2024 reveal negative net equity of £2,098 and net current liabilities of £2,099, indicating an immediate working capital deficit. The company shows a significant creditor balance due after one year (£4,778), likely linked to fixed asset financing. The current assets (£66) are negligible, and current liabilities within one year are £2,165, which the company cannot cover with available liquid assets. This financial position raises concerns about the company’s ability to meet short-term obligations and service any debt. Furthermore, as a start-up with only 4 employees and minimal operating history, there is limited evidence of established cash flow or operational resilience. The sole director and shareholder, Mr. Ali Ahmed, has full control, but there is no indication of external financial support or a robust capital base. Given the weak balance sheet, poor liquidity, and limited trading history, approving credit at this stage would be high risk.

2. Financial Strength:

The balance sheet shows negative shareholders’ funds of £2,098, signifying that liabilities exceed assets. Fixed assets are £4,778, but these are offset by long-term creditors of the same amount, indicating these assets are financed entirely by debt. Current liabilities exceed current assets by £2,099, highlighting a working capital deficit. This suggests the company is relying on creditor funding to sustain operations. The lack of tangible net assets or equity cushion limits the company’s financial strength and capacity to absorb trading losses or economic setbacks.

3. Cash Flow Assessment:

Current assets are minimal (£66), implying very limited cash or receivables available to cover current liabilities of £2,165. The negative net current assets position indicates tight liquidity and potential cash flow difficulties. With no cash flow statements provided, and given the very early stage of the company, it is likely that operations are still ramping up and cash inflows may be insufficient to meet immediate debts. The company will require ongoing financial support, either from shareholder funds or creditor extensions, to maintain liquidity.

4. Monitoring Points:

• Improvement in net current assets and liquidity ratios in subsequent filings.
• Evidence of positive operating cash flow generation to support working capital needs.
• Reduction in creditor balances and increase in equity or retained earnings.
• Continued compliance with filing deadlines and no adverse changes in company status.
• Any changes in control or director appointments that may impact governance.