Company Number: 13680214

Analysis Date: 2025-07-29 18:02 UTC

1. Credit Opinion: DECLINE. BM Window Cleaning Ltd exhibits a weak financial position with persistent negative net current assets and minimal cash on hand, raising serious concerns about its ability to meet short-term liabilities. The company’s net assets are marginally positive but very low (£676), indicating minimal equity buffer. The drastic reduction in cash from £23,291 to only £84 within one year suggests deteriorating liquidity and potential cash flow stress. Furthermore, it operates with only one employee (the director) and relies heavily on the director for control and management, which might limit operational resilience. Given these factors, the company currently lacks sufficient financial strength and liquidity to support additional credit risk without significant improvement.

2. Financial Strength: The balance sheet shows fixed tangible assets of £15,750, mainly motor vehicles and other equipment, which provide some asset backing. However, net current liabilities remain high at £15,074, reflecting ongoing funding pressure from short-term creditors and tax liabilities (notably increased taxation and social security payable from £1,879 to £5,493). Shareholders’ funds have increased slightly from £112 to £676, driven by retained earnings growth, but this remains very low for a going concern. The company’s reliance on short-term creditor finance and the absence of a strong equity base mean the financial strength is fragile.

3. Cash Flow Assessment: Cash availability has plunged dramatically from £23,291 at the end of 2022 to only £84 at the end of 2023, indicating poor cash generation or high cash outflows. The negative net current assets position and high short-term liabilities (£15,158) further underline liquidity risks. The company’s working capital deficit limits its ability to absorb financial shocks or delays in customer payments. The absence of disclosed profit and loss data limits visibility on operational cash inflows, but the cash depletion trend is a red flag for ongoing liquidity management.

4. Monitoring Points:

• Cash conversion cycle and monthly cash flow trends: Watch for improvement or continued depletion.
• Timely payment of tax and social security obligations to avoid penalties.
• Changes in creditor balances and any new short-term borrowing.
• Retained earnings growth and profitability indicators once P&L data is available.
• Director’s actions on business strategy or capital injections to strengthen equity.
• Any significant changes in operating scale, customer base, or contracts that could affect revenue stability.