Company Number: SC756543

Analysis Date: 2025-07-29 19:24 UTC

1. Credit Opinion: DECLINE
   Perth Cleaning Services Ltd shows a weak financial position with net liabilities of £9,244 and negative net current assets of £10,271 as of 30 June 2024. The company is newly incorporated (2023) and has no employees, indicating very limited operational scale. Current liabilities are substantial at £29,548, dominated by VAT payable (£59,955) offset by director loans (£34,174). The negative equity and working capital deficit raise concerns about the company’s ability to meet short-term obligations and service debt. Without positive cash flow or profitability history, and given the director loan accounting complexity, the risk of non-payment is elevated. Credit approval is not recommended until financial performance improves and equity strengthens.

2. Financial Strength:
   The balance sheet reveals a fragile financial structure. Fixed assets are minimal (£1,027 net), current assets stand at £19,277 primarily as debtors and cash, while current liabilities significantly exceed current assets. The company’s shareholders’ funds are negative, reflecting cumulative losses or capital shortfalls. The director loan of £34,074 is a related party liability that partially offsets creditors but does not eliminate liquidity risk. Lack of employee base suggests no active revenue generation or operational scale.

3. Cash Flow Assessment:
   Cash on hand is low at £8,184 and insufficient to cover immediate liabilities of £29,548. Debtors (£11,093) may not be readily collectible, and significant VAT due (£59,955) indicates a tax liability that will require cash outflow. The negative working capital position signals liquidity stress and potential reliance on director funding or external support. The absence of employees also implies the business is not yet generating operational cash flows to sustain itself.

4. Monitoring Points:

• Improvement in net current assets and positive working capital
• Reduction in VAT and other creditors, ensuring tax payments are met timely
• Clear evidence of revenue generation and cash flow from operations
• Equity infusion or repayment of director loans to strengthen the balance sheet
• Filing of up-to-date profit and loss accounts to assess profitability trends