GO CLEAN HILLMORTON LTD

Executive Summary

GO CLEAN HILLMORTON LTD is currently solvent but showing early symptoms of liquidity strain as evidenced by a shift to negative working capital and declining net assets. Immediate focus on cash flow management and cost control is recommended to restore financial health and avoid future distress.

GO CLEAN HILLMORTON LTD - Analysis Report

Company Number: 13841524

Analysis Date: 2025-07-20 15:18 UTC

Financial Health Assessment: GO CLEAN HILLMORTON LTD (Year ending 31 March 2024)

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1. Financial Health Score: C

Explanation:
GO CLEAN HILLMORTON LTD demonstrates modest financial stability typical of a micro-entity in its early years of operation. The company shows a notable decline in net current assets and net assets in the latest year, signaling emerging liquidity pressure. While not immediately critical, this downward trend warrants attention to avoid symptoms of financial distress.

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2. Key Vital Signs

Metric	2024 Value	2023 Value	Interpretation
Fixed Assets	£2,370	£3,040	Slight reduction; reflects limited investment in long-term assets.
Current Assets	£3,375	£8,125	Significant decrease; may indicate cash outflows or slow receivables collection.
Current Liabilities	£4,008	£5,462	Decrease, but still exceeds current assets, indicating potential liquidity constraints.
Net Current Assets (Working Capital)	-£633	£2,663	Shift from positive to negative working capital — a symptom of possible cash flow strain.
Total Assets Less Current Liabilities	£1,737	£5,703	Decline in net asset base; could affect company's buffer against unexpected expenses.
Net Assets / Shareholders’ Funds	£1,737	£5,703	Declining equity indicates the company is consuming retained earnings or capital.
Average Number of Employees	1	1	Stable headcount; consistent with micro-entity profile.

Interpretation:

• The company’s negative working capital in 2024 is the most concerning vital sign. This suggests that current liabilities exceed current assets, which can create cash flow problems and difficulty meeting short-term obligations.
• The decline in net assets indicates the company may be experiencing operating losses or drawing down capital.

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3. Diagnosis

GO CLEAN HILLMORTON LTD is in the early stages of its business lifecycle but is showing early symptoms of financial stress, particularly concerning liquidity. The shift from a healthy working capital position in 2023 to a negative one in 2024 suggests cash flow management issues, potentially due to higher short-term liabilities or reduced cash inflows from operations. The company’s fixed assets remain minimal, which is typical in service businesses like window cleaning. The persistent small size (micro-entity status) and stable headcount imply limited scale but also limited capacity to absorb shocks.

Overall, while the company remains solvent with positive net assets, the downward trend in liquidity and equity signals caution. If unaddressed, these symptoms could progress to more serious financial distress such as inability to pay creditors on time or needing external financing.

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4. Recommendations

To improve financial wellness and avoid further deterioration, GO CLEAN HILLMORTON LTD should consider the following actions:

• Enhance Cash Flow Management:
  Review payment terms with customers and suppliers. Accelerate debtor collections and negotiate longer payment terms with creditors to restore positive working capital.

• Cost Control:
  Examine operating expenses for potential reductions or efficiencies, considering the fixed nature of many costs in a small service business.

• Build Financial Reserves:
  Retain any profits or inject additional capital to strengthen shareholders’ funds, providing a buffer against future challenges.

• Monitor Financial Metrics Regularly:
  Track key indicators monthly to detect early warning signs and take prompt corrective action.

• Explore Growth Opportunities Carefully:
  Expand service offerings or customer base prudently to increase revenue without overstretching resources.

• Seek Professional Advice:
  Engage an accountant or financial advisor for tailored strategies, especially if cash flow issues persist.

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Executive Summary

GO CLEAN HILLMORTON LTD exhibits early signs of financial strain, notably a shift to negative working capital and declining net assets, which are symptoms of liquidity stress. While still solvent, the company should act promptly to improve cash flow and build financial resilience to ensure sustainable operations going forward.