CIE CLEANING LTD

Executive Summary

CIE CLEANING LTD is financially stable but showing early signs of operational and financial contraction, with declining net assets and no employees. While liquidity remains positive, proactive cash flow management and strategic operational adjustments are crucial to prevent further decline and support sustainable growth.

CIE CLEANING LTD - Analysis Report

Company Number: 13189903

Analysis Date: 2025-07-19 12:46 UTC

1. Financial Health Score: C

Explanation: CIE CLEANING LTD's financial health is assessed as a grade C. The company shows basic solvency and positive net assets, indicating a stable but modest financial position. However, the downward trend in net assets and current assets over the last year, combined with minimal operational scale (no employees reported), signals early symptoms of financial strain and operational contraction. These suggest caution and a need for proactive financial management to avoid further weakening.

2. Key Vital Signs:

• Net Assets: £3,043 (2024) down from £4,989 (2023) Interpretation: Net assets represent the company's equity or "financial muscle." The decline of 39% indicates erosion of value, akin to losing strength in a patient over time.

• Current Assets: £2,623 (2024) down from £5,060 (2023) Interpretation: Current assets, including cash and receivables, are the "liquid reserves" for meeting short-term obligations. A nearly 50% shrinkage here is a symptom of tightening cash flow or reduced business activity.

• Current Liabilities: £493 (2024) down from £976 (2023) Interpretation: Decrease in short-term debts reduces pressure on liquidity but may also reflect reduced supplier credit or contracting operations.

• Net Current Assets (Working Capital): £3,445 (2024) down from £5,359 (2023) Interpretation: Positive working capital is a healthy sign, indicating the company can cover short-term debts. However, the decrease signals less cushion and potential future stress.

• Fixed Assets: £98 (2024) down from £130 (2023) Interpretation: Slight reduction in long-term assets suggests minimal investment or possible asset disposals.

• Share Capital: £100 (constant) Interpretation: Low share capital typical for micro-entity, implies limited permanent capital base.

• Employees: 0 (2023 & 2024) Interpretation: No employees on average indicates either a non-operational status or reliance on outsourcing/contractors, which could impact revenue stability and growth.

3. Diagnosis:

CIE CLEANING LTD presents as a micro-entity operating in building cleaning with a modest asset base and no reported employees. The company is solvent with positive net assets and net current assets, which is a sign of baseline financial health. However, the significant reduction in net assets and current assets over the last year shows symptoms of financial distress or operational downsizing.

The lack of employees indicates the company may have ceased or paused active trading, relying potentially on subcontractors or is in a holding pattern. The stable but low share capital and small fixed asset base reflect a lean operation with limited investment in long-term resources.

The presence of a new director appointed in late 2022 and the resignation of previous directors in 2023 may reflect management changes possibly linked to strategic repositioning or financial challenges.

Overall, the company’s financial condition suggests it is currently stable but fragile, with early warning signs warning of potential liquidity or operational issues if the downward trend continues.

4. Recommendations:

• Immediate focus on cash flow management: The company should monitor and manage cash inflows and outflows carefully to preserve its healthy liquidity buffer.

• Operational review: Investigate reasons behind the zero employee count and assess if the business model is sustainable without in-house staff. Consider hiring or engaging reliable subcontractors to stabilize operations.

• Cost control and efficiency: Evaluate fixed and current costs to identify savings opportunities to protect net asset value.

• Strategic planning: Develop a clear business plan with revenue targets and cost forecasts to reverse the asset decline trend.

• Capital injection: Consider raising additional capital or securing financing if necessary to support operations and growth.

• Regular financial monitoring: Establish monthly financial health checks to detect symptoms of distress early.

• Governance and compliance: Ensure all filings and legal obligations remain current to avoid penalties that could exacerbate financial strain.

This diagnostic approach aims to strengthen the company’s financial pulse and prevent progression to more serious financial ailments.