Company Number: 14723826

Analysis Date: 2025-07-20 12:12 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk evidenced by net liabilities of £5,342 in its first reported period. The negative net current assets indicate immediate liquidity concerns. Given its recent incorporation and micro-entity status, the financial base appears very weak.

2. Key Concerns:

• Negative Net Assets: The company’s liabilities exceed its assets, which may impair its ability to meet obligations.
• Current Liabilities Exceed Current Assets: A working capital deficit of £5,342 signals potential cash flow constraints.
• Frequent Director Turnover: Multiple changes in directorship within the first year may indicate governance instability or internal challenges.

3. Positive Indicators:

• No Overdue Filings: The company has filed accounts and confirmation statements on time, indicating compliance with statutory obligations.
• Active Business Classification: Registered in hairdressing and beauty treatment, a service sector with potential steady local demand.
• Small Employee Base: Only 3 employees, which may limit fixed overheads and allow operational flexibility.

4. Due Diligence Notes:

• Investigate the nature and maturity of current liabilities totaling £5,662 to assess immediate repayment risks.
• Review cash flow projections and any capital injection plans to address the net liability position.
• Clarify reasons behind director resignations and appointments to understand governance dynamics.
• Assess business model viability and revenue streams given the early stage and financial position.
• Verify the extent of financial support or guarantees from shareholders, especially given the large shareholding of Miss Weilin Lu and other PSCs.