CLEAN & ORGANISED WITH HAYLEY LTD

Executive Summary

CLEAN & ORGANISED WITH HAYLEY LTD exhibits a stable financial position with positive net assets and working capital indicative of good short-term liquidity. However, the small scale and limited cash buffers suggest vulnerability to external shocks, requiring careful cash flow management and prudent financial planning. Strengthening reserves and clarifying accounting treatments will enhance financial resilience going forward.

CLEAN & ORGANISED WITH HAYLEY LTD - Analysis Report

Company Number: 13554301

Analysis Date: 2025-07-29 12:55 UTC

Financial Health Assessment for CLEAN & ORGANISED WITH HAYLEY LTD

---

1. Financial Health Score: B-

Explanation:
The company shows signs of stable financial footing with positive net current assets and net assets increasing year-on-year. However, the scale is very modest due to the micro-entity status, and limited working capital indicates a need for cautious cash flow management. The absence of debt and positive shareholder funds are healthy signs, but the overall size and scale suggest vulnerability to external shocks.

---

2. Key Vital Signs

Metric	2023	Interpretation
Current Assets	£650	Small but increased from previous year, indicates modest liquidity.
Current Liabilities	(£192) (negative)	Negative figure suggests possible prepaid income or accounting treatment; generally positive as liabilities are low.
Net Current Assets	£842	Healthy working capital, showing ability to meet short-term obligations.
Net Assets (Total Equity)	£368	Positive net worth, increased from £211 in 2022, indicating retained profits or capital injection.
Average Number of Employees	2	Very small workforce consistent with micro-entity classification.
Audit Exemption Status	Exempt	Reflects small size, financial simplicity but less external scrutiny.

Interpretation:
The company’s current assets exceed its current liabilities, providing a "healthy cash flow pulse" to cover immediate expenses. Net assets growth shows retained earnings or capital strengthening the "financial muscle." The accounting for creditors as a negative liability may be an accrual or deferred income, which is not uncommon but requires clarity to confirm no liquidity constraints.

---

3. Diagnosis

CLEAN & ORGANISED WITH HAYLEY LTD is in a stable but fragile financial condition typical of a very small, owner-managed cleaning business. The positive net current assets and net assets signal a "healthy heartbeat" in terms of liquidity and solvency, meaning it can cover short-term bills and has some equity buffer.

However, the small absolute scale means it is vulnerable to external shocks such as customer payment delays or unexpected expenses. The financial statements show no debt burden, which is positive, but also limited growth capital. The director’s dual role as owner and operator suggests tight management control but also concentration risk.

There are no "symptoms of distress" like overdue filings or negative equity, which is reassuring. The company benefits from audit exemption, which reduces compliance costs but also means less external financial oversight.

---

4. Recommendations

• Cash Flow Monitoring: Maintain vigilant tracking of cash inflows and outflows to avoid liquidity crunches given the small cash buffer.
• Clarify Negative Current Liabilities: Investigate the nature of negative creditors (£192) to ensure it is deferred income or similar, not unrecorded liabilities. Transparent accounting here is critical.
• Build Reserves: Aim to gradually increase retained profits to strengthen net assets, building resilience against unexpected expenses or downturns.
• Diversify Client Base: Explore ways to expand or stabilize revenue streams to reduce vulnerability to loss of any single customer.
• Maintain Timely Filings: Continue punctual submission of accounts and confirmation statements to avoid penalties and maintain good standing.
• Consider Insurance: Given dependency on owner-operator, consider insurance to mitigate risks like illness or accident affecting operations.
• Plan for Growth: If growth is planned, consider financial forecasting and possibly external advice on funding options to support scaling.

---