Company Number: 12798617

Analysis Date: 2025-07-20 16:50 UTC

1. Credit Opinion: DECLINE
   Diamond Bright Cleaning Services Limited demonstrates a deteriorating financial position with net current liabilities of £3,656 at the 2024 year-end, reversing from a positive net current asset position of £969 in 2023. This liquidity strain indicates difficulty in meeting short-term obligations. The company remains micro-sized, with minimal capital (£1 share capital) and limited asset base. Without evidence of positive cash flow or profitability improvements, the risk of default is heightened. The company’s short trading history and recent name changes may also reflect instability or restructuring. Therefore, extending credit facilities is not advisable at this time.

2. Financial Strength:
   The balance sheet shows declining financial health. Current assets have decreased from £7,181 in 2023 to £5,136 in 2024, while current liabilities increased from £6,212 to £8,792. The shift to net current liabilities signals working capital deficiency and potential solvency issues. Total net assets have moved from positive £969 to negative £3,656, eroding shareholder funds. This weak equity base offers limited buffer against operational or market risks.

3. Cash Flow Assessment:
   Although specific cash flow figures are not provided, the negative net current assets imply ongoing cash flow challenges. The company’s ability to generate sufficient operating cash to cover liabilities appears constrained, increasing reliance on external financing or owner contributions. Average employee numbers remain low at 2, indicating a small-scale operation, but without improvements in receivables or cash reserves, liquidity risk persists.

4. Monitoring Points:

• Track quarterly cash flow statements to confirm liquidity trends and operational cash generation.
• Monitor changes in current liabilities and any overdue creditor payments.
• Review director or shareholder injections of capital or loan financing.
• Watch for any late filings or changes in director status that may signal governance issues.
• Observe business performance indicators post-2024 to assess recovery or further decline.