CLEAN & GREEN UTILITIES LIMITED

Executive Summary

Clean & Green Utilities Limited is a small, micro-entity engineering consultancy maintaining solvency but exhibiting signs of tightening liquidity and reduced equity over the last year. The company remains compliant with statutory filings and operationally stable with a small workforce. Further investigation into cash flow dynamics, profitability, and director-related transactions is recommended to fully assess financial sustainability and risk exposure.

CLEAN & GREEN UTILITIES LIMITED - Analysis Report

Company Number: 13208748

Analysis Date: 2025-07-29 14:05 UTC

1. Risk Rating: MEDIUM
   The company is a micro-entity with modest net current assets and shareholders’ funds, which suggests a limited financial buffer. The increase in current liabilities relative to the previous year, combined with a reduction in net assets, indicates some tightening of liquidity. However, the company remains solvent on a balance sheet basis with positive net current assets and no overdue filings.

2. Key Concerns:

• Liquidity pressure: Current liabilities have increased significantly from £10,560 to £18,556 while current assets grew modestly, shrinking net current assets from £4,187 to £1,550. This could signal cash flow constraints or rising short-term obligations.
• Declining net assets: Shareholders’ funds decreased from £8,723 to £5,632 within one year, reflecting either losses or distributions that reduce the equity base and financial resilience.
• Director’s advances: The director had a loan balance outstanding in the prior year which was repaid in the current year. While currently cleared, director loans can represent financial dependencies that warrant further review.

3. Positive Indicators:

• Compliance: The company is active, not in liquidation, and all statutory accounts and confirmation statements are filed on time with no overdue returns.
• Solvency: Despite tighter liquidity, the company maintains positive net current assets and positive total assets less liabilities, indicating solvency at the balance sheet date.
• Stable operations: The company employs an average of 2 employees consistently, suggesting operational continuity and a stable small-scale business model.

4. Due Diligence Notes:

• Cash flow analysis: Obtain cash flow statements or management accounts to assess actual liquidity trends and ability to meet short-term obligations.
• Profit and loss review: Investigate the cause of the decline in shareholders’ funds—whether due to operating losses, dividends, or asset write-downs.
• Director loans and transactions: Review the nature and terms of director advances including any potential related party transactions or guarantees.
• Business model sustainability: Understand the company’s revenue generation and customer base, especially given the engineering consultancy SIC code and small scale.
• Future outlook and risks: Assess any contingent liabilities or off-balance sheet commitments not visible in micro-entity accounts.