Company Number: 14457723

Analysis Date: 2025-07-29 12:10 UTC

1. Credit Opinion: DECLINE
   KGM Cleaning Services Limited shows significant financial weakness at its first financial year-end. The company has net current liabilities of £4,846 and negative shareholders’ funds of £4,239, indicating it is insolvent on a balance sheet basis. Cash of £4,785 is insufficient to cover current liabilities of £9,631. The lack of profitability data and short trading history (incorporated in November 2022) further increases uncertainty. Without a clear plan for capital injection or profitability turnaround, the risk of default on credit obligations is high.

2. Financial Strength:
   The balance sheet reveals minimal fixed assets (£707 net book value) and negative equity, meaning liabilities exceed assets. The company’s negative net assets of £4,139 and negative retained earnings suggest accumulated losses or initial start-up deficits. This weak capital base undermines financial resilience and the ability to absorb shocks or fund expansion without external support.

3. Cash Flow Assessment:
   Available cash is only £4,785 against current liabilities of £9,631, giving a current ratio below 0.5, indicating poor liquidity and working capital deficiency. The company likely faces cash flow constraints impacting its ability to pay suppliers and short-term debts promptly. There is no evidence of significant cash inflows or credit facilities to mitigate liquidity risk.

4. Monitoring Points:

• Profitability trends and cash flow generation in future accounts filings.
• Changes in working capital management, especially reduction in current liabilities or increase in receivables/cash.
• Any capital injections or shareholder loans to improve solvency and liquidity.
• Director changes and any adverse conduct records.
• Timely filing of accounts and confirmation statements to assess ongoing compliance and transparency.