KLEANMATIC LTD

Executive Summary

Kleanmatic Ltd operates as a micro-scale player in the competitive UK cleaning services sector but faces significant financial challenges with consistently negative net assets and working capital deficits. Industry trends favor firms that can invest in quality, sustainability, and reliability, areas where Kleanmatic’s constrained financial position limits competitiveness. Without strategic financial restructuring or scaling, the company is vulnerable to competitive pressures from better-capitalised peers.

KLEANMATIC LTD - Analysis Report

Company Number: 13584089

Analysis Date: 2025-07-29 13:24 UTC

1. Industry Classification

Kleanmatic Ltd operates primarily in the cleaning services sector under SIC codes 81299 (Other cleaning services), 81229 (Other building and industrial cleaning activities), and 81210 (General cleaning of buildings). This sector is characterised by fragmented market players ranging from large national contracts to small niche providers. The industry typically involves labour-intensive operations with modest capital requirements, where service quality, reliability, and cost efficiency are critical competitive factors. The sector also faces increasing regulatory scrutiny regarding health and safety and environmental standards.

2. Relative Performance

Kleanmatic Ltd is classified as a micro-entity, reflecting its very small scale relative to typical industry participants. Its financials reveal persistent net liabilities: net assets have deteriorated from -£142 in 2021 to -£2,145 in 2024, with current liabilities consistently exceeding current assets. The company reported no employees on average, indicating a possible reliance on subcontractors or minimal operational scale. Compared to typical cleaning services firms, which usually maintain positive working capital and some equity buffer to manage operational cash flow volatility, Kleanmatic’s negative net assets and net current liabilities represent significant financial fragility.

3. Sector Trends Impact

The cleaning services sector has seen increased demand driven by heightened hygiene awareness post-pandemic, as well as growth in commercial and industrial cleaning contracts. However, rising labour costs, supply chain constraints for cleaning materials, and competitive pricing pressures squeeze margins, especially for smaller operators. Environmental concerns are pushing demand for eco-friendly cleaning solutions, requiring investment in new products or processes. Kleanmatic’s micro scale and financial weakness may limit its ability to invest in these areas, potentially constraining client acquisition and retention amid evolving market expectations.

4. Competitive Positioning

As a micro-entity with negative net assets, Kleanmatic appears to be a niche or start-up player struggling to achieve financial stability in a competitive environment dominated by more established SMEs and large firms. Its lack of employees and low current assets suggest limited operational capacity. While smaller players can compete by specialising or offering flexible local services, Kleanmatic’s deteriorating balance sheet poses challenges for securing contracts that require financial credibility and guarantees. Without improvement in financial health or scaling operations, it risks being outcompeted by firms with stronger balance sheets and more robust service offerings.