Company Number: 12453994

Analysis Date: 2025-07-19 12:53 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Deep'n Blue Cleaning Service Caversham Ltd shows signs of ongoing operation with stable net asset values but has a persistent negative net current asset position (working capital deficit). The company’s ability to meet short-term obligations is constrained given current liabilities exceed current assets by £1,313 at the latest year-end. The presence of a director’s loan account within creditors indicates reliance on internal funding which may be a risk factor. Approval is recommended with conditions requiring monitoring of liquidity improvements and controls over debtors and creditors.

2. Financial Strength:
   The company’s balance sheet reveals modest fixed assets (£1,765) and low equity (£117 net assets), reflecting a micro-sized entity. Share capital is minimal (£101). Total assets less current liabilities decreased slightly to £452, showing a slight contraction in net asset coverage. Deferred tax liability of £335 affects net asset levels. The company’s retained earnings are minimal (£16 income statement reserve). Overall, the financial position is thin but stable without signs of insolvency.

3. Cash Flow Assessment:
   Liquidity is weak with current liabilities (£3,679) exceeding current assets (£2,366), resulting in negative working capital of £1,313. Cash on hand improved to £1,131 from £466 the prior year, and trade debtors increased to £1,235, but reliance on director’s loan (£1,046) and corporation tax payable (£2,537) raises short-term repayment concerns. Cash flow management must be closely watched, especially debt collection efficiency and creditor payment terms.

4. Monitoring Points:

• Working capital trends and efforts to reduce current liabilities or increase current assets.
• Collection period on trade debtors given their increased balance.
• Status and terms of director’s loan account to assess risk of withdrawal or further support.
• Corporation tax liabilities and payment schedules.
• Profitability trends as indicated in future income statements to build reserves.