AZURE AESTHETICS LIMITED

Executive Summary

Azure Aesthetics Limited is currently financially distressed, with significant negative net assets and working capital deficits that threaten its ability to meet short-term liabilities. The company’s financial trajectory is declining, raising concerns about its capacity to service debt. Credit extension is not recommended without substantial improvement in liquidity and balance sheet strength.

AZURE AESTHETICS LIMITED - Analysis Report

Company Number: 12610168

Analysis Date: 2025-07-20 15:37 UTC

1. Credit Opinion: DECLINE
   Azure Aesthetics Limited exhibits significant financial distress with persistent and worsening negative net assets and net current liabilities. The company’s inability to cover short-term liabilities with its current assets signals a high risk of default on credit obligations. Without evidence of turnaround or external support, extending credit is not advisable.

2. Financial Strength:
   The company has a micro-entity classification with minimal share capital (£1.00). Over the last five years, net assets have deteriorated from positive £11,222 in 2019 to a negative £20,032 in 2024. Current liabilities significantly exceed current assets (£686 vs £20,718 in 2024), indicating poor liquidity and balance sheet weakness. Shareholders’ funds are negative, showing accumulated losses and potentially eroded equity.

3. Cash Flow Assessment:
   Current assets are minimal and decreasing, with no indication of cash reserves sufficient to meet short-term obligations. The large net current liability position suggests ongoing cash flow problems, likely requiring external financing or capital injection to sustain operations. Working capital is negative and worsening year-on-year.

4. Monitoring Points:

• Improvement in net current assets and net assets
• Cash flow from operations and ability to generate positive liquidity
• Reduction of current liabilities or restructuring of debt
• Changes in management strategy or capital injections to stabilize finances
• Timely filing of accounts and confirmation statements to monitor ongoing compliance