CLEANED IT LTD

Executive Summary

CLEANED IT LTD operates as a micro-entity in the highly competitive general cleaning sector, exhibiting typical small-scale financial characteristics but facing liquidity challenges with rising current liabilities and declining net assets. The company’s niche positioning and compliance discipline are strengths, though it remains vulnerable to industry pressures such as rising costs and market volatility. Strategic focus on operational efficiency and service differentiation will be critical to sustain and improve its market position.

CLEANED IT LTD - Analysis Report

Company Number: 13062216

Analysis Date: 2025-07-20 11:03 UTC

1. Industry Classification
   CLEANED IT LTD operates in the "general cleaning of buildings" sector, classified under SIC code 81210. This sector is characterised by small to medium enterprises providing janitorial services, commercial, and sometimes residential cleaning. The industry typically exhibits low capital intensity but requires consistent operational efficiency and workforce management. The market is highly competitive with many micro and small companies, and barriers to entry are relatively low.

2. Relative Performance
   As a micro-entity, CLEANED IT LTD's financials reflect modest scale operations. The company’s fixed assets have declined from £17,740 in 2023 to £13,409 in 2024, indicating either asset disposals or depreciation exceeding new investment. Current assets are low (£861), and current liabilities have grown significantly from £4,352 to £9,238 within one year, resulting in a net current liability position of £-8,377. This indicates short-term liquidity pressures that are not uncommon in micro-sized cleaning companies, which often operate on tight working capital. Net assets have decreased from £14,207 in 2023 to £4,932 in 2024, signalling a weakening equity base. However, the company maintains positive shareholders’ funds, which is better than many peers that might face insolvency risks.

3. Sector Trends Impact
   The general cleaning industry is influenced by factors such as labour cost inflation, regulatory compliance (health and safety, environmental standards), and demand fluctuations tied to broader economic cycles. Post-pandemic recovery has seen increased demand for hygiene and sanitisation services, which could be an opportunity for growth if effectively leveraged. However, rising energy costs and wage inflation present headwinds, likely contributing to increased overheads. Additionally, technological adoption (e.g., automated cleaning equipment) is gradually shaping competitive advantage but may be less accessible to micro-entities.

4. Competitive Positioning
   CLEANED IT LTD is a niche player in the micro segment of the cleaning industry, with only one employee on average, suggesting a highly focused or owner-operated model. Its financials reveal a constrained liquidity position relative to typical small competitors, who often maintain tighter control of current liabilities to avoid operational disruption. The decline in net assets and increasing current liabilities may reflect challenges in managing cash flow or contract terms. Strengths include maintaining positive net assets and compliance with filing obligations, indicating sound governance for a micro business. Weaknesses include potential vulnerability to market volatility due to limited financial resilience and scale. To enhance competitiveness, the company may need to focus on cost control, client diversification, or service specialisation (e.g., niche cleaning services) to differentiate itself in a crowded marketplace.