Company Number: 13003699

Analysis Date: 2025-07-29 20:05 UTC

Financial Health Assessment: ARYA CLEANING LTD as of 31 August 2024

---

1. Financial Health Score: B

Explanation:
ARYA CLEANING LTD demonstrates a generally solid financial position with improving liquidity and net assets over the latest financial year. The company has transitioned from working capital deficits in previous years to a healthy net current asset position and positive equity. The B grade reflects good financial "vital signs" but highlights areas for continued vigilance, particularly in managing tax liabilities and sustaining growth.

---

2. Key Vital Signs

Metric	2024 Value	Interpretation
Cash at bank and in hand	£8,643	Healthy cash reserves, more than tripled from £2,222 in 2023 — indicates good cash flow management and liquidity.
Current Liabilities	£5,092	Increased from £2,656 in 2023, largely due to tax and social security costs (£4,721), which require careful monitoring to avoid liquidity strain.
Net Current Assets	£3,551	Positive swing from a deficit of £434 in 2023 — suggests improved short-term financial health and working capital management.
Net Assets / Shareholders Funds	£4,712	Increased significantly from £120 in 2023 — indicates strengthening equity base and business stability.
Tangible Fixed Assets (Net Book Value)	£1,161	Increased from £554 in 2023 — investment in fixed assets shows business growth and capital expenditure.
Share Capital	£100	Minimal share capital typical for small private companies.
Employees	1	Small operation, implying a lean business model with limited overhead.

---

3. Diagnosis: What the Financial Data Reveals About Business Health

ARYA CLEANING LTD shows strong signs of recovery and improving financial condition after several years of working capital challenges. The company’s "heartbeat" — its cash flow and working capital — has stabilized and strengthened markedly, moving from a negative net current asset position to a positive one. This indicates the company can meet its short-term obligations comfortably, a key marker of financial health.

The increase in tangible fixed assets suggests investment in equipment or machinery supporting business expansion or efficiency improvement. Shareholders’ funds reflect accumulated profits, growing from a near break-even equity to a healthy positive net worth, indicating the company is building retained earnings and shareholder value.

However, the significant rise in tax and social security liabilities within current liabilities could be a "symptom of distress" if not managed carefully. These obligations may impact liquidity if they become overdue or grow faster than the company’s cash inflows.

The company’s small size (one employee) and niche industry (specialised cleaning services) imply a focused business, which can be agile but also sensitive to market fluctuations and client retention.

---

4. Recommendations: Specific Actions to Improve Financial Wellness

• Maintain and Monitor Cash Flow: Continue to nurture the healthy cash reserves, ensuring timely collection of receivables and prudent payment of liabilities, especially tax and social security costs which have increased sharply.
• Tax Planning and Compliance: Engage in proactive tax planning to manage liabilities and avoid penalties or cash flow disruption. Consider setting aside provisions monthly to smooth out tax payments.
• Growth Investment: Carefully assess fixed asset investment returns to ensure capital expenditures are translating into increased revenue or operational efficiencies.
• Diversify Client Base: Given the small scale, work to expand the customer base to reduce dependency on few clients and stabilize revenue streams.
• Financial Forecasting: Implement rolling financial forecasts to anticipate future cash needs and avoid liquidity crunches.
• Cost Control: Continue monitoring operating expenses to maintain profitability as the business grows.
• Prepare for Strategic Scaling: If growth is planned, consider increasing staffing or outsourcing strategically to maintain service quality without overextending resources.

---