Company Number: 14305664

Analysis Date: 2025-07-20 11:05 UTC

1. Credit Opinion: APPROVE with caution. Atilla's Barber Ltd is a very small private limited company operating in the hairdressing and beauty treatment sector. The company shows positive net current assets and net assets at the latest year end, indicating a modestly stable financial position. However, the absolute amounts are low, reflecting a micro-sized business with limited financial buffer. The company has no history of missed filings or overdue accounts and is active in trade. The director holds full control, which simplifies governance but concentrates risk. Given the small scale and low asset base, credit exposure should be limited and monitored closely, but the company currently demonstrates sufficient financial integrity to support modest credit facilities.

2. Financial Strength: The balance sheet shows net assets of £739 at 31 August 2024, up from £144 the prior year, driven by improved net current assets (£739 compared to £144). Current assets total £1,637 with cash of £1,605, indicating good cash availability relative to liabilities of £898. The company carries minimal fixed assets or long-term liabilities (not disclosed), consistent with a service business model. Shareholders’ funds are positive and increasing, supported by retained earnings. The company’s financial size and capital base are very modest, limiting its capacity to absorb shocks but currently showing a stable and improving position.

3. Cash Flow Assessment: The company maintains a healthy cash position (£1,605) relative to short-term creditors (£898), resulting in a positive net working capital of £739. Debtors are low (£32), minimizing risk of cash flow delays. Trade creditors and tax liabilities have reduced significantly from the prior year, improving liquidity. The business employs 2 staff, indicating low fixed overheads. Overall, the liquidity profile is sufficient for current operations and short-term obligations, but the small absolute cash and working capital figures suggest cash flow is tight and reliant on continuous trading.

4. Monitoring Points:

• Watch cash balances and working capital closely, as low absolute values leave limited margin for error.
• Monitor timely payment of taxes and social security contributions, which have historically been significant short-term liabilities.
• Track profitability and accumulation of retained earnings to ensure continued capital growth.
• Observe any changes in director control or ownership concentration risk.
• Review trading volumes and customer base to assess business resilience in the hairdressing sector, sensitive to economic downturns and local competition.
• Ensure continuing compliance with filing deadlines and statutory requirements.