PREEN AND CLEAN LEEDS NORTH WEST LTD

Executive Summary

PREEN AND CLEAN LEEDS NORTH WEST LTD is a very small, micro-entity business with marginal net assets and limited financial strength. The company demonstrates stable but minimal working capital and low overheads, supporting modest credit exposure with caution. Conditional credit approval is recommended with close monitoring of liquidity and operational cash flow metrics.

PREEN AND CLEAN LEEDS NORTH WEST LTD - Analysis Report

Company Number: 12458484

Analysis Date: 2025-07-29 12:49 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   PREEN AND CLEAN LEEDS NORTH WEST LTD is a micro-entity operating in window cleaning services with a very modest balance sheet and limited financial resources. The company shows positive net current assets and net assets, albeit at a low level (£411 in 2023). The financials indicate a stable but very small operation with minimal growth or profit accumulation. Given the limited scale and working capital, the company’s ability to service larger credit facilities is constrained. Credit approval could be considered with conditions such as low exposure limits, short-term facilities only, and regular financial monitoring.

2. Financial Strength:
   The company’s balance sheet reveals total net assets of £411 at the end of 2023, up from £278 in 2022, indicating slight improvement. Current assets are largely cash and receivables totaling £4,121, slightly down from £5,054 the prior year. Current liabilities have reduced from £4,776 in 2022 to £3,710 in 2023, improving net current assets to £411. The company carries no fixed assets or significant capital base, and shareholders’ funds are minimal (£411), reflecting the micro-entity status. Overall, the financial strength is weak but stable, typical for a small service business in a niche market.

3. Cash Flow Assessment:
   The company’s net current assets position is positive but marginal, indicating limited liquidity buffer. The working capital is sufficient to cover short-term liabilities with a current ratio just above 1. The accounts show an average of 1 employee, suggesting low overheads and fixed costs, which may aid cash flow stability. However, the low asset base and small retained earnings mean the company has limited capacity to absorb financial shocks or delays in receivables. Cash flow management must be closely monitored, especially if credit facilities are extended.

4. Monitoring Points:

• Net current assets and current ratio trends: ensure they remain positive and stable.
• Receivables aging and collections efficiency to avoid working capital strain.
• Profitability and reserves growth to build financial resilience.
• Director and ownership changes or any PSC updates that may affect governance or control.
• Timely filing of accounts and confirmation statements to maintain compliance and transparency.