CLASS CLEAN LTD

Executive Summary

Class Clean Ltd is a newly formed micro-entity exhibiting stable but very limited financial strength, with current assets just enough to cover short-term liabilities. The company shows good compliance and governance indicators but has a fragile capital base typical of start-ups. Focused cash flow management, building reserves, and strategic growth planning are essential to improve financial wellness and secure sustainable operations.

CLASS CLEAN LTD - Analysis Report

Company Number: SC806668

Analysis Date: 2025-07-20 14:58 UTC

Financial Health Assessment for CLASS CLEAN LTD

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1. Financial Health Score: C

Explanation:
Class Clean Ltd is a newly incorporated micro-entity operating in the cleaning services sector. The financial data shows a very modest net asset base (£199) and barely positive net current assets, indicating the company is in the earliest stage of its financial lifecycle. Given its micro size and recent incorporation, this score reflects a cautious but stable start without significant financial strength or distress signals yet. The limited financial history and small capital base limit the ability to grade higher, but no adverse signs are evident.

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2. Key Vital Signs

Metric	Value	Interpretation
Current Assets	£7,262	Represents short-term resources, mainly cash and receivables, showing some liquidity.
Current Liabilities	£7,063	Obligations due within one year; almost equal to current assets.
Net Current Assets	£199	Slight positive working capital, indicating minimal short-term cushion.
Net Assets (Equity)	£199	Very small equity base, reflecting initial capital invested or retained earnings.
Average Employees	2	Small team, consistent with micro-entity classification.

Interpretation:

• The net current assets of £199 reveal a "healthy cash flow" symptom in that liabilities are covered by assets, but only marginally. This is akin to a patient whose vital signs are stable but with very limited reserves.
• The balance sheet is extremely lean, typical for a startup or micro business with minimal operational history.
• No audit was required, which is consistent with the company’s small size and early stage.
• Two directors/owners each hold between 25-50% shares and have rights to appoint/remove directors, suggesting balanced control and potentially strong governance if they remain engaged.

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3. Diagnosis

Class Clean Ltd is in the nascent phase of its business life cycle, showing early signs of operational establishment but with very limited financial buffer. The balance sheet reveals a business with just enough current assets to meet short-term liabilities — a symptom that could indicate vulnerability to unexpected expenses or cash flow interruptions. However, absence of overdue filings and a stable company status reflect good compliance and governance health, which are positive indicators.

The company's small scale and micro-entity classification mean it likely operates with low overheads, but also limited capacity to absorb shocks or invest in growth without additional funding.

Overall, the financial condition is stable but fragile, typical for a start-up. The company's future health will depend heavily on generating revenues, managing cash flow carefully, and building reserves.

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4. Recommendations

• Build Cash Reserves: Aim to increase net current assets to provide a stronger buffer against unforeseen expenses. This can be achieved by managing payables and receivables efficiently and controlling costs.
• Monitor Cash Flow Regularly: Implement monthly cash flow forecasts to detect early symptoms of distress, avoiding liquidity crunches that can threaten operations.
• Plan for Growth: Explore opportunities to increase client base and revenue streams while maintaining cost discipline. Consider eco-friendly and specialized cleaning niches as highlighted by industry codes for competitive advantage.
• Governance and Compliance: Maintain timely filing of accounts and confirmation statements to avoid penalties, ensuring the company’s "health" in the eyes of regulators.
• Capital Injection if Needed: If growth plans require investment, consider equity or loan funding to strengthen the balance sheet and support operational scaling.
• Employee Management: With a small team, ensure adequate training and capacity to deliver high-quality services, which aids reputation and repeat business.

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