Company Number: 14667788

Analysis Date: 2025-07-19 12:46 UTC

1. Risk Rating: LOW
   The company exhibits a positive net asset position with a healthy increase in net current assets and shareholder funds over the latest reporting period. There are no overdue filings or regulatory compliance issues noted, and the company is actively trading with a clear ownership and management structure.

2. Key Concerns:

• Modest scale and early stage: Incorporated in early 2023, CM CLEANS LTD is a very young and small company, which inherently carries operational risks typical of startups, such as market penetration and cash flow stability.
• Limited fixed assets and working capital: Fixed assets remain minimal (£585), which is typical for cleaning businesses but indicates limited collateral value. While net current assets are positive (£7,384), the company relies heavily on debtor balances (£6,150) which may pose collection risks.
• Single Director and Owner Concentration: Control is wholly with one individual, which can be a governance risk if there is no operational continuity plan or independent oversight.

3. Positive Indicators:

• Improved financial position: The company moved from a negative net current asset position (-£510) in 2024 to a positive £7,384 in 2025, reflecting better liquidity and operational cash flow.
• No overdue statutory filings: Both accounts and confirmation statements are up to date, indicating good regulatory compliance.
• Clear industry focus with diversified SIC codes: The company operates primarily in general cleaning but also has retail sales via internet/mail order, which may diversify revenue streams.

4. Due Diligence Notes:

• Verify the collectability of trade debtors (£6,150) to ensure liquidity is not overstated.
• Review the turnover and profit & loss details (not filed publicly) to assess operational profitability and cash flow trends.
• Understand the director’s business plans and risk mitigation, given single-person control and ownership concentration.
• Confirm no contingent liabilities or off-balance sheet risks, especially given the startup nature.
• Investigate customer base stability and contract terms to evaluate revenue sustainability.