Company Number: 13458106

Analysis Date: 2025-07-29 19:37 UTC

1. Risk Rating: MEDIUM
   Justification: The company is active with up-to-date filings and shows modest net assets as of the latest accounts. However, persistent net current liabilities and reliance on long-term creditors indicate liquidity pressure. The micro-entity classification and limited fixed assets constrain financial flexibility.

2. Key Concerns:

• Negative net current assets over multiple years, reaching -£2,476 in 2024, suggest ongoing working capital deficits that could impair the company’s ability to meet short-term obligations.
• Significant long-term liabilities (£5,000) remain unchanged with low net assets (£391), indicating limited buffer for creditor claims and potential solvency risk if operational cash flows falter.
• Frequent director changes within a short timeframe, including a resignation and reappointment of directors in 2025, could imply instability in governance or strategic direction.

3. Positive Indicators:

• The company has maintained active status and has no overdue statutory filings, demonstrating compliance with regulatory requirements.
• Net assets have improved from negative values in prior years to a positive £391 in 2024, reflecting some recovery or capital injection.
• The business operates in the hairdressing and beauty treatment sector, which can offer steady demand and opportunities for cash generation in a local market setting.

4. Due Diligence Notes:

• Investigate the nature and terms of the £5,000 long-term liabilities to assess risk exposure and repayment schedule.
• Review cash flow statements and management accounts to understand operational cash generation and working capital management, given the persistent net current liabilities.
• Clarify the reasons for director turnover and verify the current governance structure to ensure stable leadership.
• Confirm whether the company has any contingent liabilities or disputes not disclosed in the micro-entity accounts.
• Assess client base, revenue streams, and business model sustainability in the competitive hairdressing industry locally.