Company Number: 13056695

Analysis Date: 2025-07-20 13:13 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   CLEAN VALLEY LTD demonstrates modest but consistent growth in net assets and working capital over the last four years, suggesting improving financial stability. However, the absolute scale of the business remains small (micro-entity level), with limited fixed assets and equity. Given the company’s specialised cleaning services industry, a relatively low asset base, and small workforce, credit facilities should be extended cautiously with monitoring on cash flow and timely repayments.

2. Financial Strength:

• Net Assets have grown from £1,342 (2020) to £3,862 (2023), indicating retained earnings and capital growth.
• Fixed Assets have slightly decreased from £5,383 to £4,396, which is not unusual for a service business with limited capital expenditure.
• The company carries some long-term liabilities (creditors falling due after more than one year), but these have reduced from £6,333 in 2022 to £5,383 in 2023, improving leverage.
• Shareholders’ funds equal net assets, showing no hidden liabilities.
• Overall, the balance sheet is stable but with limited buffer for unexpected shocks.

3. Cash Flow Assessment:

• Current Assets (£5,246) slightly exceed Current Liabilities (£397), resulting in positive net current assets of £4,849 in 2023.
• The company improved working capital from £1,631 in 2020 to £4,849 in 2023, enhancing liquidity.
• The low current liabilities figure for 2023 (£397) compared to prior years indicates improved short-term liquidity management.
• Average employee count increased from 2 to 3, implying modest growth and payroll cost increase, but manageable given asset and equity trends.
• Absence of audit and micro-entity status means limited financial disclosure detail, requiring cautious interpretation of cash flow sufficiency.

4. Monitoring Points:

• Monitor continued improvement in net current assets and cash conversion cycles to ensure ongoing liquidity.
• Watch for any significant increase in short-term or long-term liabilities that could strain cash flow.
• Track revenue and profitability trends via future accounts filings to confirm growth trajectory.
• Keep oversight on director changes and control structure, noting recent appointment and resignation activity.
• Assess impact of any economic downturn or sector-specific risks on cash flow and payment behavior.