Company Number: 14569410

Analysis Date: 2025-07-29 12:50 UTC

Financial Health Assessment of LISKERRETT CLEANING SERVICES LTD

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1. Financial Health Score: C

Explanation:
Liskerrett Cleaning Services Ltd, as a newly incorporated company (since January 2023), shows a foundational but somewhat fragile financial position. Key indicators reveal the company is in an early growth phase with modest assets but is experiencing a working capital deficit and low liquidity, suggesting early "symptoms of financial strain." The overall grade "C" reflects a fair but cautious outlook requiring attention to cash flow and liabilities management.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Cash at bank	510	Very low cash reserve; risk of liquidity crunch ("weak pulse" in cash flow)
Current liabilities	1,257	Short-term debts exceed cash, indicating potential pressure on meeting immediate obligations
Net current assets	-747	Negative working capital, a "warning symptom" of cash flow stress
Fixed assets (Tangible)	5,305	Reasonable investment in plant/machinery to support operations
Total assets less current liabilities	4,558	Positive buffer after deducting short-term debts, showing some asset backing
Net assets / Shareholders Funds	3,550	Positive equity base, indicating owners have invested capital and retained earnings
Number of employees	1	Small micro-business scale, limiting economies of scale
Profit & Loss reserves	3,450	Retained earnings are positive, but no detailed profit information disclosed

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3. Diagnosis: What the Financial Data Reveals

• Liquidity & Cash Flow: The company’s cash position is quite low at £510, while current liabilities stand at £1,257, leading to a net current asset deficit of £747. This "symptom" suggests the company may struggle to cover short-term debts without additional cash inflows or financing. The low cash "heartbeat" should be monitored closely to avoid potential payment delays or overdrafts.

• Asset Base: The company holds £5,305 in tangible fixed assets, mainly plant and machinery, which reflects initial investment in operational capacity. This is a healthy sign that the business is equipped to deliver services, though the assets are depreciating.

• Capital Structure: Shareholders’ funds of £3,550 indicate the company has a positive equity base. The owners, Mr. and Mrs. Kernaghan, hold significant control and equity, which provides a stable ownership structure and potential for further capital injection if needed.

• Profitability: The absence of a profit and loss account in the filings limits insight into operational profitability. However, the positive retained earnings suggest initial earnings or capital contributions. The business is likely in its start-up phase, which is typical for such companies.

• Going Concern: Directors affirm the company is a going concern, with reasonable expectation of continuing operations, which aligns with the current financial snapshot.

• Size & Scale: As a micro business with only one employee, the company is likely facing typical start-up challenges including limited financial flexibility and scale.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Improve Liquidity:

  • Prioritize generating positive cash flow by accelerating receivables collection and managing payables to avoid liquidity stress.
  • Consider short-term financing options such as a business overdraft or invoice financing to bridge cash flow gaps.

• Monitor Working Capital Closely:

  • The negative net current assets indicate a "symptom of working capital deficiency." Regularly review current assets and liabilities to prevent liquidity crises.

• Build Cash Reserves:

  • Aim to increase cash holdings to cover at least 3 months of operating expenses to create a financial safety net.

• Profit & Loss Transparency:

  • Prepare and review detailed profit and loss statements periodically to understand operational performance and identify cost-saving opportunities.

• Strategic Growth & Investment:

  • Evaluate the return on investment of fixed assets and ensure that capital expenditure supports revenue growth efficiently.

• Owner Support & Funding:

  • Given the significant ownership and control by the directors, consider potential capital injections or loans from shareholders to strengthen equity and liquidity if needed.

• Regular Financial Reviews:

  • Schedule quarterly financial health check-ups to monitor evolving "vital signs" and adapt strategies promptly.

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Executive Summary