Company Number: 15463036

Analysis Date: 2025-07-29 16:30 UTC

1. Risk Rating: MEDIUM

Justification: Extraction Cleaning Limited is a newly incorporated private limited company (incorporated February 2024) operating in specialised cleaning services. The financial data for its first accounting period shows limited operating scale, modest tangible assets, and a net asset position just above £1,500, with current liabilities exceeding cash but net current assets positive. The presence of finance lease obligations suggests some leverage. The company has no employees reported yet, indicating early-stage operational development. While solvency is currently maintained, the limited financial scale and lease commitments raise medium-term risk concerns, especially given the infancy of the business.

2. Key Concerns:

• Leverage from Finance Leases: The company reports £6,502 in obligations under finance leases and hire purchase contracts, which is significant relative to its net assets (£1,587). This may pressure cash flows given the limited cash balance (£1,927).
• Limited Operational History and Scale: With no employees reported and only one year of financial data, it is difficult to assess ongoing revenue generation and business sustainability.
• Thin Equity Base: Shareholders’ funds stand at £1,587, implying limited equity cushion to absorb operational losses or unexpected costs.

3. Positive Indicators:

• No Overdue Filings or Compliance Issues: The company’s accounts and confirmation statements are filed on time, indicating good regulatory compliance.
• Ownership and Control Concentration: Mr Andrew Paul Garland holds 75-100% ownership and voting rights, simplifying decision-making and potentially facilitating swift strategic responses.
• Tangible Fixed Assets: The company has invested in motor vehicles (£6,562 net book value), which are likely operationally essential assets supporting service delivery.

4. Due Diligence Notes:

• Cash Flow Projections and Revenue Generation: Investigate current and projected revenue streams, client contracts, and cash flow forecasts to assess liquidity sustainability.
• Lease Terms and Obligations: Review the detailed terms of finance leases/hire purchase contracts to understand repayment schedules and impact on cash flow.
• Business Model and Market Position: Evaluate the company’s competitive positioning within the specialised cleaning sector and plans for growth or employee recruitment.
• Director Background and Capacity: Consider the experience and track record of the sole director and owner to assess operational competence and governance.