Company Number: 13640571

Analysis Date: 2025-07-29 13:13 UTC

1. Credit Opinion: APPROVE
   Alchemy HG Ltd demonstrates a marked turnaround in financial health from the prior year, moving from negative net assets to a positive equity position. The company has no overdue filings, and the director appears to have stable control and management continuity. Given the micro-entity scale and the positive working capital, the company shows capacity to meet short-term obligations and service credit facilities at this level. However, the very small size and limited staff (only one employee including the director) indicate modest operational scale, warranting monitoring if credit exposure is significant.

2. Financial Strength:
   The balance sheet as of 30 September 2024 shows net assets of £11,609, a significant improvement from a negative net asset position of £-3,110 the previous year. Fixed assets are minimal (£1,063), consistent with a service-oriented business model. Current assets (£18,650) comfortably exceed current liabilities (£7,829) yielding net current assets of £11,446, indicating good short-term financial resilience and working capital adequacy. The company is classified as a micro-entity, reflecting its small size and limited financial complexity.

3. Cash Flow Assessment:
   Current assets predominantly consist of cash and receivables, providing liquidity to cover immediate liabilities. The net current asset position suggests positive working capital management. There is no indication of any overdue liabilities or creditor pressure. The single director-manager model, with no additional staff, may contribute to tight control of expenses and cash flows but also implies limited operational capacity to generate substantial cash inflows. Cash flow volatility should be considered in credit sizing.

4. Monitoring Points:

• Maintain vigilance on cash flow trends given the micro scale and limited operational buffer.
• Monitor any changes in director control or ownership that may impact governance or credit risk.
• Watch for any significant increase in liabilities or deterioration in working capital.
• Track filing compliance and any changes in business scale or sector conditions affecting hairdressing services.