CLEAN SLATES (DERBY) LTD

Executive Summary

Clean Slates (Derby) Ltd is an early-stage private company showing initial financial strain with net liabilities and reliance on director loans. While regulatory filings are current and governance transparent, the company’s solvency and liquidity position present high risk without clear evidence of operational cash flow or external funding. Further inquiry into funding plans, contract status, and director financing is recommended to assess sustainability.

CLEAN SLATES (DERBY) LTD - Analysis Report

Company Number: 15049351

Analysis Date: 2025-07-29 20:26 UTC

1. Risk Rating: HIGH
   The company shows net current liabilities and net negative shareholders’ funds at the end of its first financial year, indicating an immediate solvency concern. The negative equity position and reliance on director loans suggest financial vulnerability.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The balance sheet records net liabilities of £4,226, which raises questions about the company’s ability to meet its obligations without additional capital infusion.
• Director’s Loan as Primary Creditor: A significant portion (£4,026) of current liabilities is owed to the director, implying reliance on director financing rather than third-party funding or operational cash flow. This may affect the company’s financial independence and sustainability.
• Early Stage with Limited Financial History: Incorporated in August 2023 and reporting only for the initial period to June 2024, there is limited financial track record to assess operational stability or growth prospects.

3. Positive Indicators:

• Compliance with Filings: The company is up to date with its accounts and confirmation statement filings, indicating good regulatory compliance.
• Clear Ownership and Control: The sole director and 75-100% shareholder is identified, providing transparency in governance.
• Industry Classification Fits Business Model: The SIC code 43390 (Other building completion and finishing) is consistent with the company’s name and presumed activities, suggesting alignment in business purpose.

4. Due Diligence Notes:

• Investigate Cash Flow Sources and Future Capital Plans: Given the negative net assets and director loan, clarify how the company plans to fund its operations and reduce liabilities.
• Assess Contract Pipeline and Revenue Generation: Verify whether the company has secured contracts or revenue streams consistent with its turnover recognition policy and stage of completion accounting.
• Review Director’s Financial Exposure and Intentions: Understand the terms and sustainability of the director’s loan and whether additional support or external financing is anticipated.
• Confirm No Undisclosed Contingent Liabilities or Related Party Transactions: Ensure completeness of liabilities and related party disclosures to fully assess financial risk.