S P CLEANERS 2022 LIMITED

Executive Summary

S P CLEANERS 2022 LIMITED is currently loss-making with negative net assets and inadequate liquidity, indicating a high credit risk. The company’s worsening financial position and working capital deficits undermine its ability to service debt, leading to a recommendation to decline credit at this stage. Close monitoring of financial recovery and cash flow improvements is essential before reconsidering credit support.

S P CLEANERS 2022 LIMITED - Analysis Report

Company Number: 14253301

Analysis Date: 2025-07-20 14:09 UTC

1. Credit Opinion: DECLINE
   S P CLEANERS 2022 LIMITED demonstrates a weak financial position with consistent negative net assets and shareholders' funds, worsening from -£8,962 in 2023 to -£15,555 in 2024. The company is incurring losses (a £6,592 loss in the latest period) with minimal current assets (£51) versus significant current liabilities (£15,606). This indicates poor ability to meet short-term obligations and service debt. Given the lack of profitability, negative equity, and limited liquidity, the risk of default is high. Therefore, credit facilities are not advisable at present.

2. Financial Strength:
   The company is classified as a micro-entity with minimal fixed assets and negligible working capital. Its net current liabilities have increased by over 70% year-on-year, evidencing deteriorating financial health. The negative net assets reflect accumulated losses without any visible capital injection or reserves to absorb further shocks. The balance sheet shows no tangible buffer, suggesting fragile solvency.

3. Cash Flow Assessment:
   Current assets consist almost entirely of cash or equivalents (£51), which is insufficient against current liabilities exceeding £15,000. The working capital deficit has nearly doubled in 12 months, implying ongoing cash flow stress. The loss-making operations (negative P&L) further constrain internal cash generation, raising concerns about the company’s ability to fund day-to-day operations or service any debt.

4. Monitoring Points:

• Track improvement (or further decline) in net current assets and net assets.
• Monitor profitability trends to see if operational losses are reversed.
• Watch for any capital injections or director loans that may strengthen liquidity.
• Review management’s cash flow forecasts and business plans for viability.
• Ensure timely filing of accounts and confirmation statements to avoid compliance risks.