Company Number: 14193818

Analysis Date: 2025-07-29 12:34 UTC

Financial Health Assessment for WELL CLEANED CLEANING SERVICES LTD

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1. Financial Health Score: B

Explanation:
The company exhibits signs of solid financial improvement and stability, particularly in working capital and net assets, which have more than tripled from 2024 to 2025. However, the micro-entity scale and relatively low fixed assets base limit the overall score. The company is not showing distress symptoms but remains vulnerable due to its small size and single-employee operation.

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2. Key Vital Signs

Metric	2024-25 Value	Interpretation
Fixed Assets	£645	Low fixed asset base, typical for service firms, minimal capital investment.
Current Assets	£7,303	Healthy increase, showing better liquidity and available cash/resources.
Current Liabilities	£4,901	Declined slightly from previous year, manageable short-term debts.
Net Current Assets	£4,686	Strong positive working capital, indicates ability to cover short-term obligations comfortably.
Total Assets Less CL	£5,331	Reflects overall asset coverage after short-term liabilities.
Net Assets / Shareholders’ Funds	£4,387	Increased significantly, showing retained earnings/profit accumulation.
Average Employees	1	Very small workforce, operational risk if key person is unavailable.

Additional Observations:

• Prepayments and accrued income increased notably, suggesting either advance payments or receivables growing.
• Accruals and deferred income are moderate and stable, not posing immediate concern.

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3. Diagnosis

Financial Vital Signs:
The company’s financial "pulse" is strong: net current assets rising sharply demonstrate a "healthy cash flow" environment, enabling the business to meet short-term liabilities without strain. The net asset growth reflects profitability or capital infusion, improving the financial "immune system."

Symptoms Analysis:

• The consistent positive net current assets and net assets over successive years indicate no symptoms of liquidity stress or insolvency risk.
• The low fixed assets and very small team size imply a lean operational model, typical for cleaning services but also a potential "single point of failure" risk if the key director/employee is incapacitated.
• The micro-entity size limits scale and market reach but also reduces complexity and overhead.

Overall Health:
The business shows signs of being financially robust at its current scale, with no indications of distress such as increasing liabilities, falling assets, or negative working capital. The steady increase in net assets is a positive sign of retained earnings or equity growth.

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4. Recommendations

To maintain and improve financial wellness:

• Diversify workforce: Consider hiring or training additional staff to reduce dependency on a single individual, improving operational resilience.
• Cash flow monitoring: Continue to monitor working capital closely, especially as business grows, to avoid any cash flow bottlenecks.
• Asset investment: Evaluate opportunities to invest in fixed assets or technology that can enhance service delivery and efficiency.
• Growth planning: Develop a strategic plan to scale operations cautiously, balancing growth with financial stability.
• Maintain compliance: Ensure timely filing of accounts and confirmation statements to avoid penalties and maintain good standing.
• Financial forecasting: Implement basic budgeting and forecasting tools to anticipate future financial needs and risks.

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