Company Number: 14448276

Analysis Date: 2025-07-20 18:37 UTC

1. Risk Rating: MEDIUM
   The company is very new (incorporated late 2022) and operates as a micro-entity with minimal assets and equity. While it is currently solvent with positive net assets, the presence of long-term creditors nearly equal to total assets signals potential solvency and liquidity risks if the business does not generate sufficient cash flow.

2. Key Concerns:

• Long-term liabilities (£9,200) nearly equal to total assets (£9,891): This thin equity buffer may expose the company to solvency risk if liabilities crystallize or assets are impaired.
• Very low current assets (£610) and minimal working capital: The company’s liquidity position is fragile, raising concerns about its ability to meet short-term obligations promptly.
• Single director and controlling shareholder: With 100% shareholding and directorship held by one individual, there is concentration risk and limited governance oversight.

3. Positive Indicators:

• Compliance with filings and no overdue accounts or confirmation statements: This indicates good regulatory adherence since incorporation.
• No audit requirement and micro-entity status: Reflects small scale and lower complexity, which may limit operational risks.
• Positive net assets and shareholders’ funds (£691): Though small, the company is not in immediate negative equity.

4. Due Diligence Notes:

• Investigate the nature and terms of the £9,200 long-term creditors to understand repayment obligations and covenants.
• Review cash flow forecasts and business model viability in the hairdressing/beauty treatment sector, especially given limited current assets.
• Assess the director’s background and capacity to manage and grow the business sustainably.
• Confirm no related party transactions or contingent liabilities hidden in notes not included here.
• Monitor future filings for material changes in financial position or governance structure.