MAID SO CLEAN LTD

Executive Summary

MAID SO CLEAN LTD is a newly established micro-entity exhibiting early financial distress, with negative equity driven by significant long-term liabilities exceeding assets. While current liquidity is not immediately compromised, urgent financial restructuring and capital reinforcement are recommended to restore a healthy financial condition and support sustainable growth.

MAID SO CLEAN LTD - Analysis Report

Company Number: 14988130

Analysis Date: 2025-07-20 11:45 UTC

Financial Health Assessment for MAID SO CLEAN LTD

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1. Financial Health Score: D

Explanation:
The company shows early signs of financial distress. While assets exist, notably fixed assets of £9,000, the financial structure is burdened by significant long-term liabilities (£14,297) that exceed total assets, resulting in negative net assets and shareholder funds (-£5,130). The micro-entity is only one year old, with minimal operational scale (1 employee), but the negative equity and liabilities heavier than assets indicate an unhealthy financial state.

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2. Key Vital Signs

Metric	Value	Interpretation
Fixed Assets	£9,000	Modest investment in long-term assets; a positive sign
Current Assets	£167	Very low liquid assets, indicating limited cash or receivables
Current Liabilities	£0	No short-term debts reported, which is good
Creditors > 1 Year	£14,297	Significant long-term liabilities exceed assets
Net Current Assets	£167	Positive but very low working capital
Net Assets (Equity)	-£5,130	Negative equity, indicating liabilities exceed total assets
Shareholders Funds	-£5,130	Reflects accumulated losses or capital deficit
Employee Count	1	Very small scale, consistent with micro-entity status

Interpretation:

• The company's "vital signs" indicate symptoms of financial strain: the presence of long-term creditors exceeding total assets is a warning signal akin to "organ failure" in a business's financial health.
• The lack of current liabilities reduces immediate short-term pressure, but the negative net assets suggest the business is underwater financially.
• Very low current assets imply limited liquidity to meet obligations or fund operations comfortably.
• The micro-entity status and being only 1 year old mean the company is at an early growth stage, but the financial structure is concerning.

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3. Diagnosis

MAID SO CLEAN LTD is in a precarious financial condition. The negative equity position signals that the company’s obligations exceed its resources, a symptom of financial distress potentially due to startup costs, undercapitalization, or initial losses. While the absence of short-term liabilities is a positive sign—indicating no immediate liquidity crisis—the long-term creditor balance is a significant burden.

Given the company’s very recent incorporation (July 2023) and micro-entity size, the financial "symptoms" suggest either significant initial borrowing or deferred liabilities not yet matched by asset growth or revenue generation.

This financial state is analogous to a patient showing signs of critical illness but not yet in acute crisis: intervention is needed to prevent deterioration.

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4. Recommendations

• Capital Injection: Consider increasing equity funding to restore positive net assets and improve the financial foundation.
• Debt Restructuring: Engage with creditors to renegotiate terms or reduce long-term liabilities to alleviate financial burden.
• Cash Flow Management: Improve liquidity by accelerating receivables, controlling costs, and possibly securing short-term financing.
• Operational Scaling: Develop a clear business plan focused on revenue growth to offset liabilities and generate profits.
• Monitoring: Regularly review financial metrics akin to "vital signs" to detect early warning signs of distress and act promptly.
• Professional Advice: Seek guidance on financial restructuring and tax-efficient funding options tailored for micro-entities.

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