ACTIVE COSMETICS LIMITED
Company number 04210567 · 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.
Commercial Credit Assessment: ACTIVE COSMETICS LIMITED
1. Credit Opinion: DECLINE
Reasoning: This entity is registered with SIC code 74990 (Non-trading company) and classified as a micro entity with minimal filing requirements. The company appears to be a dormant or passive subsidiary within the Rainbow Cosmetics group structure, with no evidence of independent trading activity or revenue generation. With only £100 in share capital and non-trading status, this entity lacks the operational profile and financial transparency required for standalone credit exposure. Any meaningful credit assessment would need to be directed at the parent entity, Rainbow Cosmetics (Holdings) Limited.
2. Financial Strength
Severely Limited Visibility
| Factor | Assessment |
|---|---|
| Share Capital | £100 only — nominal |
| Account Category | Micro — minimal disclosure required |
| Net Assets | Unknown — not provided in filings |
| Trading Status | Non-trading (SIC 74990) |
| Group Structure | 100% owned by Rainbow Cosmetics (Holdings) Limited |
The micro entity classification means the company files abbreviated accounts with no profit & loss or cash flow disclosure. As a non-trading entity, it is likely generating no independent revenue. The £100 share capital represents the absolute minimum at incorporation and suggests no additional capital has been injected.
Key Concern: Without audited financial statements or trading activity, there is no basis for assessing balance sheet adequacy or solvency.
3. Cash Flow Assessment
No Assessable Cash Flows
The non-trading designation indicates this company is not engaged in commercial operations. Therefore:
- No revenue streams identifiable for debt service coverage
- No working capital cycle to evaluate
- No trade creditors/debtors visible for payment behaviour analysis
- Liquidity position is entirely unknown
If this entity is being used as a vehicle for group financing or asset holding, those arrangements are not visible from the filed information. Any cash flows would likely be inter-company in nature and dependent on the parent's financial position.
4. Monitoring Points
Should credit be considered under a group structure approach, the following would require investigation:
| Priority | Monitoring Point | Rationale |
|---|---|---|
| Critical | Parent company financials (Rainbow Cosmetics Holdings) | All financial substance resides at group level |
| Critical | Purpose of this entity within group structure | Understand why a non-trading subsidiary exists — asset holding? IP? |
| High | Inter-company positions | Debts owed to/from parent may be the only real balances |
| High | Group guarantee availability | Any lending would require parent company support |
| Medium | Director backgrounds | Sharman family control — assess track record across group |
| Medium | Previous name change (BADGECREST LIMITED) | Understand rationale for 2001 name change shortly after incorporation |
Additional Observations
- Director Conduct: No disqualification records found against directors Stephen John Sharman or John William Sharman — this is a positive signal for management integrity.
- Filing Compliance: Accounts and confirmation statements are current and not overdue, indicating basic administrative competence.
- Longevity: 23+ years since incorporation suggests stability within the group structure, though non-trading status limits the relevance of this factor.
Recommendation: If the credit requirement stems from a commercial relationship with the wider Rainbow Cosmetics group, the assessment should be redirected to the appropriate trading entity and/or the parent company with full group financials available.