BEECLEAN EDINBURGH LTD

Executive Summary

BEECLEAN EDINBURGH LTD has shown a commendable recovery in its financial health over the last year, marked by a significant improvement in liquidity and net assets. The company’s financial position is stable and improving, though as a micro-entity with limited capital, prudent cash flow management and cautious growth are essential to maintain this positive trajectory.

BEECLEAN EDINBURGH LTD - Analysis Report

Company Number: SC672133

Analysis Date: 2025-07-19 12:44 UTC

Financial Health Assessment: BEECLEAN EDINBURGH LTD
As of Financial Year Ending 31 August 2024

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1. Financial Health Score: B

Explanation:
BEECLEAN EDINBURGH LTD shows a solid recovery and improvement in its financial health over the past year. The company has moved from a weakened position with negative working capital in 2023 to a healthy net current asset position in 2024. The net assets have increased significantly, indicating strengthening shareholder equity. However, as a micro-entity with modest fixed assets and current assets, the scale of operations is limited, and certain volatility remains. Overall, the company’s financial "vital signs" suggest it is stable and improving but not yet at a robust level typical of larger or more capitalized businesses.

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2. Key Vital Signs & Interpretation

Metric	2024 (£)	2023 (£)	Interpretation
Fixed Assets	3,180	4,812	Slight reduction; indicates some asset disposals or depreciation; still modest asset base.
Current Assets	2,695	2,690	Stable short-term asset base, mostly cash or receivables, essential for liquidity.
Current Liabilities	232	6,789	Dramatic reduction; strong symptom of improved liquidity and reduced short-term obligations.
Net Current Assets	2,927	(4,099)	Turnaround from negative to positive working capital — a key vital sign of business health.
Total Assets less Current Liabilities	6,107	713	Strong improvement; company’s asset base comfortably exceeds liabilities.
Net Assets (Shareholders' Funds)	6,107	713	Marked increase; signals growth in retained earnings or capital injection, strengthening equity.
Number of Employees	3	2	Slight increase; may reflect business growth or additional operational capacity.

Vital Signs Interpretation:
The most striking improvement is in working capital (net current assets), which went from a troubling negative £4,099 in 2023 to a healthy positive £2,927 in 2024. This is like a patient who had symptoms of severe dehydration but now shows signs of rehydration and recovery. The reduction in short-term liabilities is a key factor here. Net assets have increased nearly 9-fold, reflecting a stronger financial foundation.

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3. Diagnosis: Business Financial Condition

BEECLEAN EDINBURGH LTD is showing clear signs of financial recovery and stabilization after a period of distress marked by high current liabilities exceeding current assets. The company’s liquidity has improved significantly, easing potential cash flow pressures. This improvement can be attributed to effective working capital management and/or repayment or restructuring of short-term debts.

The fixed asset base is modest and has decreased slightly, which is not uncommon for a micro-entity focused on service operations like cleaning. The increase in employees from 2 to 3 aligns with operational scaling.

Equity growth is a healthy sign, indicating that the company is either retaining profits or has injected capital, boosting the financial “immune system” to withstand shocks.

However, as a micro business with a small asset base and limited share capital (£1), the company remains vulnerable to external shocks or market downturns. Careful management of cash flow and costs remains crucial.

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4. Recommendations: Prescriptions for Financial Wellness

1. Maintain Healthy Cash Flow:
   Continue monitoring and managing working capital tightly. Keep current liabilities low and ensure receivables turnover is efficient to maintain liquidity and avoid symptoms of cash flow distress.

2. Build Financial Reserves:
   Given the micro status and small capital, consider gradually building retained earnings or a cash buffer to safeguard against unexpected expenses or seasonal downturns.

3. Asset Management:
   Review fixed assets to ensure they are optimally utilized. Avoid unnecessary disposals or capital expenditure that could strain liquidity unless strategically justified.

4. Cost Control and Growth Planning:
   With a slight increase in headcount, manage staffing costs carefully and align growth initiatives with cash flow capacity.

5. Regular Financial Review:
   Periodically perform financial health check-ups, tracking key indicators like net current assets, liabilities, and equity trends to catch early signs of trouble.

6. Explore Funding Options:
   If growth is targeted, evaluate funding options such as small business loans or grants, ensuring that debt levels remain manageable.

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