Company Number: 13269436

Analysis Date: 2025-07-29 14:17 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks. Negative net assets and substantial current liabilities exceeding current assets indicate financial distress.

2. Key Concerns:

• Negative Net Assets: The company has net liabilities of £9,019 as of the latest accounts (2024), indicating insolvency on a balance sheet basis.
• Poor Liquidity Position: Cash reserves are very low (£2,016) compared to current liabilities (£31,373), resulting in net current liabilities of £29,357, raising concerns about the company’s ability to meet short-term obligations.
• Bank Loan and Long-Term Creditors: The existence of bank loans (£10,296) combined with negative total assets less current liabilities (-£19,315) suggests ongoing financial obligations that may be difficult to service.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statements are filed on time, indicating regulatory compliance and managerial diligence in administrative matters.
• Consistent Reporting: The company has filed accounts annually since incorporation without gaps, showing ongoing operational reporting discipline.
• Single Director and PSC: Ownership and control are concentrated in a single individual, which can simplify decision-making and potentially expedite restructuring or recapitalization efforts if necessary.

4. Due Diligence Notes:

• Revenue and Profitability Data: Detailed turnover and profit/loss figures are not provided here; obtaining these is critical to assess operational sustainability and cash flow generation.
• Cash Flow Analysis: Investigate cash flow statements to confirm whether negative working capital is temporary or indicative of chronic cash shortages.
• Loan Terms and Covenants: Review bank loan agreements and repayment schedules to evaluate risk of default or covenant breaches.
• Director’s Future Plans: Clarify the director’s strategy to address the negative net asset position, such as capital injection, restructuring, or sale of assets.
• Trade Creditors and Payables Aging: Assess whether creditors are being paid on time or if there are arrears, which could signal liquidity stress.
• Market Position and Competitiveness: Explore the company's competitive standing in the hairdressing and beauty treatment sector to understand revenue prospects.

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