Company Number: 12622985

Analysis Date: 2025-07-20 16:25 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Alamaya Limited shows improving financial strength with rising net assets and positive working capital, indicating an enhanced ability to meet short-term obligations. However, as a micro-entity operating in the hairdressing and beauty sector—a highly competitive and consumer-dependent industry—its limited asset base and modest scale warrant cautious credit extension. Approval is recommended with conditions such as monitoring cash flow closely and limiting credit exposure until further financial stability and growth are demonstrated.

2. Financial Strength:
   The company’s net assets increased from £814 in 2023 to £5,776 in 2024, reflecting retained earnings or capital injections that have strengthened shareholders’ funds. Fixed assets remain modest at £4,550, mainly comprising fixtures and fittings, which is appropriate for its industry. The balance sheet shows a reduction in long-term creditors from £9,349 to £7,019, improving solvency, while total assets less current liabilities grew significantly to £12,795. Overall, the company has demonstrated a positive trajectory in financial health over the last two years.

3. Cash Flow Assessment:
   Current assets stand at £10,110 with current liabilities of £1,865 due within one year, resulting in a robust net current asset position of £8,245. This indicates good short-term liquidity and working capital sufficiency to cover immediate debts and operating expenses. The improvement from the prior year’s net current assets (£4,963) suggests better cash management or receivables control. However, the small scale of operations and limited financial disclosures on turnover or profit margins require ongoing scrutiny of cash flow consistency.

4. Monitoring Points:

• Maintain close oversight of receivables and payables cycles to ensure liquidity is sustained.
• Track profitability trends and turnover growth to assess business scalability and debt servicing capacity.
• Monitor long-term creditor balances and any new borrowing to prevent over-leverage.
• Review director’s financial management practices and any changes in ownership or control that may impact credit risk.
• Stay alert to industry risks such as market demand fluctuations and regulatory changes affecting the beauty treatment sector.