Company Number: 14555275

Analysis Date: 2025-07-20 11:34 UTC

1. Risk Rating: MEDIUM
   The company shows positive net assets and compliance with filing requirements, but the limited scale of operations, reliance on director loans, and relatively low cash balances suggest moderate solvency and liquidity risks.

2. Key Concerns:

• Reliance on director loans: Current liabilities consist entirely of director loans (£2,188 in 2024), indicating external financing dependence rather than operational cash flow generation.
• Shrinking net current assets: Net current assets decreased from £1,014 in 2023 to £316 in 2024, pointing to tightening liquidity.
• Limited operational history and scale: Incorporated in late 2022, with only two employees and minimal asset base, the company’s operational sustainability and market position are not yet established.

3. Positive Indicators:

• Timely compliance: No overdue accounts or confirmation statements, indicating good governance and regulatory compliance.
• Positive net assets and shareholder funds: Though small, shareholders’ funds remain positive (£316 in 2024) suggesting the company is not insolvent.
• Consistent accounting policies and small entity reporting: Accounts prepared under FRS 102 Section 1A with no material departures, reflecting adherence to applicable standards.

4. Due Diligence Notes:

• Investigate the nature and terms of director loans to assess potential risk of withdrawal or call for repayment that could impair liquidity.
• Review cash flow statements and any management forecasts (if available) to evaluate operational cash generation and future funding needs.
• Assess business model viability and customer base given the company’s young age and small scale in a competitive industry (hairdressing and other beauty treatment).
• Confirm no undisclosed contingent liabilities or pending regulatory issues beyond the provided data.