CLEAN AS A WHISTLE DORSET LTD

Executive Summary

Clean As A Whistle Dorset Ltd demonstrates solid financial health with strong liquidity, positive net assets growth, and manageable debt levels, reflecting effective financial management for a small-scale cleaning services business. Continued focus on credit control, goodwill valuation, and prudent debt management will support sustained financial wellness and resilience against potential market fluctuations.

CLEAN AS A WHISTLE DORSET LTD - Analysis Report

Company Number: 13816774

Analysis Date: 2025-07-29 15:34 UTC

Financial Health Assessment of CLEAN AS A WHISTLE DORSET LTD

---

1. Financial Health Score: B+

Explanation:
The company displays a generally healthy financial profile with strong net current assets and positive net assets growth over recent years. Its liquidity is good, with cash reserves increasing significantly, indicating a healthy cash flow "pulse." However, the presence of intangible assets (goodwill) and some long-term creditors suggests the need for monitoring asset quality and debt obligations. Overall, the company is in a sound financial state but should maintain vigilance to sustain this health.

---

2. Key Vital Signs

Metric	2024 Value	Interpretation
Fixed Assets	£24,827	Stable asset base; includes £12,000 goodwill (intangible). Amortisation assumptions not fully detailed, so asset value needs monitoring.
Current Assets	£36,408	Increased from prior year, driven by higher cash (£19,253) and debtors (£16,755). Good liquidity.
Cash at Bank	£19,253	Healthy and growing cash reserves, indicating strong cash flow management and short-term solvency.
Debtors	£16,755	Modest increase; trade debtors are manageable but require continued effective credit control.
Current Liabilities	£11,863	Slight increase but well covered by current assets, giving a net current asset buffer of £24,545.
Net Current Assets	£24,545	Positive working capital, indicating the company can comfortably meet short-term obligations.
Long-term Creditors	£4,241	Moderate long-term debt; manageable but should be watched to avoid stress on liquidity.
Net Assets / Equity	£45,131	Strong growth from £15,009 in 2021; solid foundation of shareholder funds and retained earnings.
Liquidity Ratio	~3.07 (Current Assets / Current Liabilities)	Excellent liquidity; ideal sign of financial well-being.
Leverage	Moderate	Long-term liabilities are present but not excessive relative to equity; leverage is controlled.

---

3. Diagnosis: Overall Financial Condition

• Healthy cash flow: The company’s cash at bank has more than doubled from 2023 to 2024, a vital sign of good operational cash generation and control over cash management. This "heartbeat" of liquidity suggests operational efficiency and ability to fund day-to-day activities without distress.

• Strong working capital: Positive net current assets indicate the company has sufficient short-term resources to cover liabilities. This "buffer" protects against liquidity shocks and reflects prudent financial management.

• Asset composition: The presence of goodwill (£12,000) as intangible assets requires monitoring for impairment risks. Tangible fixed assets are depreciating but remain stable, indicating sustained investment in operational capacity.

• Growth in net assets: The rise in shareholders’ funds from £15k in 2021 to £45k in 2024 shows accumulated profitability and retained earnings, a sign of financial robustness.

• Debt management: Current liabilities and long-term creditors are moderate and manageable. No signs of over-leverage or distress evident. The company should maintain this balance to avoid financial strain.

• Small scale operations: With only two employees on average and modest asset base, the company is a micro/small entity that appears well-managed financially.

---

4. Recommendations for Financial Wellness Improvement

• Monitor Goodwill and Intangible Assets: Regularly review the carrying value of goodwill to identify any impairment early, as intangible assets can mask underlying operational issues if not assessed properly.

• Strengthen Debtor Management: Maintain or improve credit control measures to ensure timely collection of trade debtors, preventing liquidity risks from overdue payments.

• Maintain Cash Reserves: Continue to build or maintain cash reserves to safeguard against unexpected expenses or downturns, ensuring a strong liquidity position.

• Manage Long-term Debt Prudently: While current debt levels appear manageable, monitor repayment schedules and interest costs to avoid future cash flow stress.

• Prepare for Growth or Investment: Consider whether reinvestment of retained earnings into growth initiatives or operational efficiency improvements could yield further financial health benefits.

• Keep Filing and Compliance on Track: Ensure timely submission of accounts and confirmation statements, maintaining good standing with Companies House to avoid penalties or reputational damage.

---