Company Number: 13943827

Analysis Date: 2025-07-29 14:52 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns as demonstrated by growing net liabilities and persistent negative working capital. The financial position deteriorated notably over the last two years, indicating elevated risk.

2. Key Concerns:

• Negative Net Assets and Working Capital: The net liabilities increased from £38k in 2022 to nearly £70k in 2024, with net current liabilities worsening from £42k to over £76k, signaling inability to cover short-term debts.
• Liquidity Strain: Current liabilities more than double current assets in the latest year, suggesting severe cash flow difficulties that could impair operational continuity.
• Sustainability of Operations: Despite being active for only two years, the company’s financial deterioration and absence of any reported profitability or reserves raise concerns about business viability.

3. Positive Indicators:

• No Overdue Filings: Annual accounts and confirmation statements are up to date, reflecting compliance with statutory filing obligations.
• Stable Management Team: Three directors have been in place since incorporation, potentially providing consistent governance and operational oversight.
• Micro Entity Status: Filing under micro-entity provisions reduces administrative burden and costs, which may help with operational efficiency.

4. Due Diligence Notes:

• Review Cash Flow Statements: To assess the timing and sources of cash inflows and outflows, clarifying operational liquidity and any reliance on director loans or external financing.
• Investigate Debt Composition: Identify creditors and terms of current liabilities to evaluate risk of default or renegotiation prospects.
• Examine Revenue and Profit Trends: Although profit and loss accounts were not filed, obtaining these internally or from management would be critical to understand operational performance and sustainability.
• Confirm Business Activities: The website title suggests a barbershop, conflicting with SIC code for public houses and bars; this discrepancy should be clarified as it may impact risk evaluation.
• Evaluate Directors’ Financial Support: Given negative equity, determine if directors have provided financial backing or guarantees to support ongoing operations.