ALEXANDRITE AESTHETICS LTD

Executive Summary

Alexandrite Aesthetics Ltd is a newly formed micro-entity showing significant financial distress with negative equity and a large working capital shortfall. The company currently lacks the financial strength and cash flow stability necessary for credit extension. Close monitoring of cash flow improvements and operational progress is essential before reconsidering credit facilities.

ALEXANDRITE AESTHETICS LTD - Analysis Report

Company Number: 14739399

Analysis Date: 2025-07-29 12:59 UTC

1. Credit Opinion: DECLINE
   Alexandrite Aesthetics Ltd shows a weak financial position as a newly incorporated micro-entity with significant negative equity (£-65,237) and current liabilities (£78,070) greatly exceeding current assets (£12,833). The absence of any employees and no revenue or profitability data raises concerns about the company’s ability to generate cash flow to meet short-term obligations. The negative net assets and working capital deficit indicate an inability to service debt or absorb financial shocks, suggesting high credit risk at this early stage.

2. Financial Strength:
   The company’s balance sheet reflects poor financial health. Current liabilities are over six times the current assets, resulting in a net current liability position (working capital deficit of approximately £65,237). Shareholders’ funds are negative, indicating accumulated losses or initial funding shortfalls. No fixed assets or long-term investments are reported, and the company operates with no employees, relying presumably on the director’s expertise in beauty treatments. This structure limits operational scalability and financial resilience.

3. Cash Flow Assessment:
   Current assets largely represent cash or equivalents (£12,833), but this is insufficient to cover immediate liabilities (£78,070). The absence of detailed profit and loss or cash flow statements prevents a full liquidity analysis; however, the working capital deficit and negative equity suggest cash flow constraints. The company may require additional capital injections or creditor concessions to sustain operations. There is no evidence of established revenue streams or profitability to support debt repayment.

4. Monitoring Points:

• Quarterly updates on cash position and working capital management.
• Evidence of revenue generation and profit margins as the business matures.
• Changes in current liabilities and any restructuring or refinancing efforts.
• Director’s track record and any new appointments to strengthen management.
• Timely filing of future accounts and confirmation statements to ensure compliance.