CLEANING ETC LTD
Company number 08506331 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Credit Analysis: CLEANING ETC LTD
1. Credit Opinion: DECLINE
This facility must be declined. The company is currently in Liquidation and has been deeply insolvent since at least 2017. Net assets have deteriorated from a positive £24,193 in 2015 to a deficit of £95,454 by May 2018. The registered office has moved to care of Clough Corporate Solutions Limited — an insolvency practitioner — confirming formal wind-down proceedings. No lending exposure should be considered.
2. Financial Strength: Severely Impaired
The balance sheet shows catastrophic decline over four years:
| Year | Net Assets | Trajectory |
|---|---|---|
| 2015 | £24,193 | Positive |
| 2016 | £1,455 | Near-zero |
| 2017 | -£15,300 | Insolvent |
| 2018 | -£95,454 | Deeply insolvent |
- Shareholders' funds: -£95,554 — complete erosion of equity
- Total liabilities exceed total assets by over £95,000
- Other creditors surged from £25,537 to £118,690 — suggesting trade creditors are unpaid and potentially writing off debts
- Taxation and social security liabilities of £38,243 indicate HMRC arrears — a priority creditor unlikely to be satisfied
- Share capital of only £100 — no meaningful capital base
The company has been technically insolvent (unable to pay debts as they fall due) since at least 2017, and the position has worsened dramatically.
3. Cash Flow Assessment: Critical
- Cash at bank: £306 (down from £3,719 in 2017) — effectively nil liquidity
- Net current liabilities: -£130,388 — no working capital whatsoever
- Current assets (£28,159) cover less than 18% of current liabilities (£158,547)
- Trade debtors declined from £24,970 to £19,656 — possibly indicating revenue contraction or collection difficulties
- Bank loans/overdrafts of £1,614 have appeared — the company was already resorting to borrowing
The company has zero capacity to service any new debt obligation. Even existing creditors stand little prospect of recovery.
4. Monitoring Points
Given the liquidation status, traditional monitoring is moot. However, for related-party risk assessment:
- Director conduct: Messrs Stewart and Amanda Messruther remain listed as directors. Their conduct should be reviewed for potential wrongful trading under Insolvency Act provisions — continuing to trade while insolvent from 2017 onwards raises concerns
- Accounts overdue: No accounts filed since May 2018; confirmation statement also overdue
- Preferential creditors: HMRC arrears of £38,243 will rank as preferential in liquidation
- Any connected entities: Consider whether directors have established replacement trading vehicles that may assume similar liabilities or customer relationships