DROP AND GO LAUNDRY SERVICES LTD

Executive Summary

Drop and Go Laundry Services Ltd is a newly formed micro-entity with modest initial operations and a slightly negative net asset position. While short-term liquidity appears sufficient, lack of detailed profit and loss information limits full credit assessment. Conditional approval is recommended, subject to review of updated financial performance and cash flow data. Continued monitoring of working capital and financial disclosures is essential as the business develops.

DROP AND GO LAUNDRY SERVICES LTD - Analysis Report

Company Number: 15219693

Analysis Date: 2025-07-29 12:28 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Drop and Go Laundry Services Ltd is a micro-entity recently incorporated in late 2023, with its first financial year ended October 2024. The company shows a small negative net asset position (£86) due to creditor balances exceeding current assets plus longer-term liabilities. However, net current assets are positive at £2,413, indicating some short-term liquidity. The absence of audited accounts and profit & loss details limits full assessment. The single director and sole significant controller has direct management and shareholding control, which can be positive for decision-making but also concentrates risk. Given the early stage of trading and modest financial footprint, credit approval should be conditional on obtaining updated management accounts demonstrating positive cash flow and profitability.

2. Financial Strength:
   The balance sheet shows current assets of £3,180 against creditors due within one year of £767, yielding positive net working capital. However, there is a creditor balance of £2,499 due after one year, pushing total liabilities above total assets and resulting in net liabilities of £86. The small scale and micro-entity reporting regime mean limited disclosures and potentially limited asset base. The company employs 3 people, consistent with micro classification. The negative equity indicates initial losses or startup costs exceeding capital invested but is marginal in absolute terms. Overall, financial strength is weak but not unusual for a startup in the service industry.

3. Cash Flow Assessment:
   Current assets mostly represent cash or receivables, supporting operational liquidity. Positive net current assets suggest the company can meet short-term obligations. However, no profit and loss details or cash flow statements were provided, limiting assessment of operating cash generation or financing needs. The director’s acknowledgment of accounting responsibilities is noted, but the small scale and lack of audit restrict transparency. Continued monitoring of cash burn rate and receivables collection will be essential. Working capital management appears adequate for now.

4. Monitoring Points:

• Subsequent management accounts to verify revenue growth and profitability
• Cash flow trends and working capital cycle, especially trade payables and receivables aging
• Movement in creditor balances, particularly long-term liabilities
• Any changes in director or ownership structure that could impact governance or control
• Compliance with future filing deadlines to maintain regulatory standing
• Potential need for external financing as the business scales or incurs capital expenditure