ESS WINDOW CLEANING LTD

Executive Summary

ESS Window Cleaning Ltd is a newly formed micro-entity showing weak financial health characterized by negative net assets and significant working capital deficits. Its current financial position suggests limited capacity to support additional credit and elevated liquidity risk. Caution is advised, and credit should be declined until stronger financial stability and cash flow evidence are demonstrated.

ESS WINDOW CLEANING LTD - Analysis Report

Company Number: 15127361

Analysis Date: 2025-07-20 12:32 UTC

1. Credit Opinion: DECLINE
   ESS Window Cleaning Ltd presents a weak credit profile primarily due to its negative net asset position and net current liabilities. Being a very recently incorporated micro-entity (less than 1.5 years old) with minimal operating history, its financials reveal significant working capital deficits and net liabilities, indicating limited ability to service new or existing credit facilities. The company’s negative shareholders’ funds (£-11,086), combined with current liabilities exceeding current assets by £13,727, expose it to liquidity risk and potential difficulty meeting short-term obligations. Without a track record of profitability or robust cash generation, extending credit carries elevated risk.

2. Financial Strength:
   The balance sheet shows fixed assets of £16,701, but current assets are only £1,326 against current liabilities of £15,053, resulting in a negative working capital position. Total liabilities, including long-term creditors (£13,100) and accruals (£960), push net liabilities to £11,086. This deficit equity situation implies that the company’s obligations exceed its assets, reflecting poor financial resilience. Given the company’s micro-entity status and negative net worth so early in its life cycle, it lacks buffer capital to absorb operational shocks or downturns.

3. Cash Flow Assessment:
   The reported financials do not provide explicit cash flow data, but the severely negative net current assets indicate potential liquidity constraints. The mismatch between current liabilities and current assets suggests reliance on external funding or overdue payables to support ongoing operations. With only two employees on average, operational cash requirements may be low, but the company’s inability to cover short-term debts from liquid assets signals cash flow stress. This raises concerns about its capacity to meet debt repayments or supplier terms without additional capital injections.

4. Monitoring Points:

• Regular review of updated management accounts to assess cash generation and working capital improvements.
• Monitoring overdue payments and creditor aging to detect liquidity pressure.
• Watch for equity injections or debt restructuring that could improve net asset position.
• Track customer contract wins or revenue growth to evaluate operational scalability and profitability trajectory.
• Observe directors’ conduct and any changes in ownership/control given recent appointments and shareholdings concentrated among three individuals.