APR ROY BARBERSHOP LTD

Executive Summary

APR ROY BARBERSHOP LTD is a newly established micro-entity with a very modest financial base and tight liquidity. While current assets slightly exceed current liabilities, the company’s limited trading history and small equity require cautious credit exposure and close monitoring. Overall, the business shows initial operational viability but demands prudent credit limits and ongoing financial oversight.

APR ROY BARBERSHOP LTD - Analysis Report

Company Number: 15209911

Analysis Date: 2025-07-29 14:24 UTC

1. Credit Opinion: APPROVE with caution. APR ROY BARBERSHOP LTD is a newly incorporated micro-entity operating in the hairdressing sector with minimal financial history. The latest accounts show positive net current assets and a small positive net asset base, indicating the company currently maintains a modest but positive working capital position. The company is owned and managed by a single director/owner with full control, which simplifies accountability but heightens dependence on one individual. Given the small scale and limited trading history, credit limits should be conservative and closely monitored.

2. Financial Strength: The company’s balance sheet as of 31 October 2024 shows:

• Current Assets: £6,618
• Current Liabilities: £6,460
• Net Current Assets (Working Capital): £158
• Net Assets / Shareholders’ Funds: £158

This reflects a very thin equity base and minimal buffer to absorb adverse trading fluctuations. The micro-entity status means simplified reporting but also limited transparency and low asset coverage. No fixed assets are reported, so the company’s tangible asset base is minimal. The positive but very small net current assets indicate the company is just covering short-term obligations.

3. Cash Flow Assessment: With current assets just covering current liabilities, liquidity is tight. The small positive working capital of £158 suggests limited cash flow reserves to manage contingencies or growth. The business employs 2 people, which implies ongoing wage commitments, so cash inflows must be steady to meet expenses. Absence of detailed profit and loss data limits deeper cash flow analysis, but the micro-entity status often correlates with modest cash generation. Close attention to receivables, payables, and day-to-day cash management is essential.

4. Monitoring Points:

• Timely filing of annual accounts and confirmation statements to ensure compliance.
• Monitoring cash flow trends, especially liquidity ratios and working capital changes.
• Assessing trading performance when profit and loss data become available.
• Watch for changes in director or ownership that could impact stability.
• Industry risks, including local competition and economic sensitivity of personal services.
• External credit references or supplier payment records to validate payment behavior.