Company Number: 13000376

Analysis Date: 2025-07-20 14:27 UTC

1. Risk Rating: LOW
   The company demonstrates solid net asset backing primarily through fixed assets, with positive net current assets and no overdue filings, suggesting a stable financial position and good compliance.

2. Key Concerns:

• Minimal cash reserves (£4,400) relative to fixed assets may constrain operational liquidity if unexpected expenses arise.
• Limited financial history (incorporated 2020) restricts trend analysis for profitability and cash flow sustainability.
• Director resignation in 2024 may warrant review for potential governance or operational impacts.

3. Positive Indicators:

• Consistently positive net assets (~£34k) and net current assets indicate solvency and effective short-term liability coverage.
• No overdue accounts or confirmation statements, reflecting good regulatory compliance and governance.
• Stable fixed asset base with recent revaluation gains supports balance sheet strength.
• Small employee base (3 average) aligns with company size, suggesting manageable operational scale.

4. Due Diligence Notes:

• Review detailed profit and loss data and cash flow statements (not provided) to confirm operational profitability and liquidity trends.
• Investigate reasons for director resignation and any impact on company management or strategic direction.
• Confirm nature and valuation basis of fixed assets to assess realizable value in stress scenarios.
• Validate tax and social security creditor amounts and confirm no significant contingent liabilities exist.
• Assess customer concentration and revenue stability given the niche industry (hairdressing and beauty treatment).