CLEAN TO PRISTINE LTD

Executive Summary

Clean To Pristine Ltd shows persistent financial distress, with severely negative net assets and working capital deficits that raise significant solvency and liquidity concerns. Reliance on director funding and absence of turnover data further complicate the risk profile. While statutory filings are up to date, substantial due diligence is required to evaluate the viability of the business and the sustainability of its financial structure.

CLEAN TO PRISTINE LTD - Analysis Report

Company Number: 12834153

Analysis Date: 2025-07-20 14:50 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, reflected in materially negative net assets and net current assets for multiple consecutive years.

2. Key Concerns:

• Severe Negative Net Assets: The net assets have deteriorated from a positive £315 in 2021 to -£10,917 in 2024, indicating accumulated losses substantially eroding shareholder equity.
• Negative Working Capital: Current liabilities of £11,816 far exceed current assets of £857 as at 2024, resulting in a net current liability position of -£10,959, which raises serious liquidity risks.
• Director Loans as Creditors: The entire creditor balance (£11,816) is owed to directors on an undated, unsecured, interest-free basis repayable on demand, suggesting dependence on director funding and potential governance risks.

3. Positive Indicators:

• No Overdue Filings: The company is current with both accounts and confirmation statement filings, indicating compliance with statutory obligations.
• Stable Management Team: The same two directors have been in place since incorporation, potentially reflecting consistent leadership.
• No Auditor Required: As a small company, exemption from audit reduces administrative burden.

4. Due Diligence Notes:

• Investigate the nature and terms of director loans, including any repayment plans or refinancing arrangements.
• Review the company’s cash flow forecasts and operational plans to assess whether going concern assumptions are realistic despite negative net assets and working capital deficits.
• Obtain turnover and profitability details to understand revenue trends and cost control measures, since turnover data is absent.
• Assess any contingent liabilities or off-balance sheet commitments that may exacerbate financial stress.
• Review correspondence with creditors and any ongoing negotiations or restructuring efforts.
• Confirm there are no director disqualifications or regulatory compliance issues beyond filings.