GO CLEAN BILLING LTD

Executive Summary

GO CLEAN BILLING LTD exhibits a sharp decline in financial health, with negative working capital and minimal net assets, signaling potential liquidity and solvency risks. The company’s ability to meet short-term obligations is compromised, and credit extension would carry high risk without substantial improvement or support. Continuous monitoring of cash flow and capital structure is essential to reassess creditworthiness going forward.

GO CLEAN BILLING LTD - Analysis Report

Company Number: 13841655

Analysis Date: 2025-07-20 14:50 UTC

1. Credit Opinion: DECLINE
   GO CLEAN BILLING LTD shows a significant deterioration in financial position over the latest reported year ending 31 March 2024. Net current assets swung from a positive £2,417 in 2023 to a negative £1,738 in 2024, indicating a liquidity shortfall and potential cash flow stress. Total net assets collapsed from £5,092 to £352, signaling a sharp decline in net worth. Such weakening financials suggest limited capacity to service new or existing credit facilities without additional capital or improved cash generation. Given the company’s micro-entity size and single-employee operation, it likely lacks diversified revenue streams or reserves to withstand operational disruptions. Without evidence of a turnaround plan or stronger financial backing, extending credit is high risk.

2. Financial Strength:
   The company’s balance sheet reveals minimal fixed assets (£2,090) and a sharp reduction in current assets from £6,860 in 2023 to £899 in 2024. Current liabilities remain substantial at £2,637, exceeding current assets and resulting in negative working capital. This indicates the company may struggle to meet short-term obligations from liquid resources. The equity base is very thin at £352, down from £5,092, eroding the cushion available to absorb losses. Overall, the financial strength is weak, and the declining net asset position raises concerns about solvency over the near term.

3. Cash Flow Assessment:
   Negative net current assets suggest liquidity constraints; the company’s current liabilities exceed its current assets by £1,738 as of March 2024. This working capital deficit implies potential difficulties in covering operating expenses and creditor payments on time. The accounts do not disclose detailed cash flow statements, but the sharp drop in current assets (likely cash and receivables) and rising liabilities indicate cash flow management issues. The single employee setup limits operational capacity to generate cash inflows, and without improvements in working capital management or external funding, cash flow risks remain elevated.

4. Monitoring Points:

• Monthly cash flow forecasts to detect liquidity stress early.
• Receivables aging and creditor payment patterns to assess working capital cycle.
• Any capital injections or repayment of liabilities that improve net asset position.
• Operational performance metrics, e.g., revenue growth, to identify recovery signs.
• Director's plans or external support that could mitigate current financial weakness.