POLE POSITION WINDOW CLEANING OLDHAM LTD

Executive Summary

POLE POSITION WINDOW CLEANING OLDHAM LTD is a micro-sized window cleaning business showing signs of liquidity strain due to negative working capital, though it maintains a positive net asset position with ongoing fixed asset investment. The financial health is fragile but viable, requiring focused cash flow management and equity strengthening to ensure sustainable growth and resilience.

POLE POSITION WINDOW CLEANING OLDHAM LTD - Analysis Report

Company Number: 14820457

Analysis Date: 2025-07-29 12:19 UTC

Financial Health Assessment for POLE POSITION WINDOW CLEANING OLDHAM LTD

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1. Financial Health Score: C

Explanation:
The company shows signs of survival but faces liquidity challenges indicated by persistent negative working capital (net current liabilities). While net assets are positive but minimal, the company is investing in fixed assets, suggesting efforts to build capacity. The thin equity base and reliance on longer-term liabilities require caution.

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2. Key Vital Signs

Metric	2025 Value	Interpretation
Fixed Assets	£58,105	Growing investment in long-term assets (equipment, property).
Current Assets	£35,954	Short-term resources including cash and receivables.
Current Liabilities	£74,599	Debts due within one year; exceeds current assets.
Net Current Assets (Working Capital)	-£38,645	Negative; indicates liquidity strain ("symptom of distress").
Creditors > 1 Year	£18,248	Long-term debt adding financial leverage and risk.
Net Assets (Equity)	£1,212	Barely positive; very thin capital buffer.
Shareholders’ Funds	£1,212	Equity held by owner, reflecting minimal retained earnings.
Employee Count	1	Micro business scale, likely owner-operated.

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3. Diagnosis

Liquidity and Working Capital (Vital Signs):
The company exhibits a consistent negative net current asset position (-£38,645 in 2025), meaning current liabilities exceed current assets. This is akin to a patient with insufficient fluid volume in their bloodstream—there is not enough "cash flow" to meet short-term obligations comfortably. This symptom signals potential liquidity stress, requiring careful cash management to avoid default.

Asset Base and Growth:
The fixed asset base nearly doubled from £31,500 to £58,105, indicating capital investment to sustain or grow operations. This is a positive sign of strategic reinvestment but also increases the company's leverage and fixed costs, which need to be balanced against operational cash flows.

Equity and Solvency:
Net assets remain positive but are very thin (£1,212), indicating limited equity cushioning. The presence of long-term creditors (£18,248) introduces financial leverage, which can be beneficial if used prudently, but risky if earnings and cash flows do not improve.

Scale and Operational Capacity:
The company is micro-sized with one employee (likely the director), which limits operational scale but also keeps overheads low. As a niche window cleaning service, growth prospects depend on market penetration and client retention.

Overall Financial Condition:
The company is in a fragile but viable state. The negative working capital is a warning symptom that requires attention to ensure survival and avoid liquidity crises. The modest equity base means the company has little buffer against unexpected shocks. However, ongoing investment in fixed assets and absence of overdue filings show management is actively maintaining and growing the business.

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4. Recommendations

• Improve Working Capital Management:
  Focus on accelerating receivables collection and negotiating longer payment terms with suppliers. Consider short-term financing options like an overdraft facility to cover temporary cash shortfalls.

• Monitor Cash Flow Closely:
  Implement weekly cash flow forecasting to anticipate liquidity gaps. Avoid unnecessary expenditures and maintain a cash reserve.

• Strengthen Equity Base:
  If possible, inject additional capital or retain earnings to build a stronger equity buffer, improving solvency and creditworthiness.

• Optimize Asset Utilization:
  Ensure fixed assets purchased are actively contributing to revenue generation. Idle assets tie up capital without returns.

• Plan for Growth Carefully:
  Given the micro-business scale, growth should be measured and sustainable, balancing new client acquisition with operational capacity.

• Seek Professional Financial Advice:
  Periodic review with a financial advisor can help diagnose ongoing symptoms and adjust treatment strategies as the business evolves.

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