Company Number: 13678962

Analysis Date: 2025-07-20 13:40 UTC

1. Risk Rating: LOW
   The company demonstrates positive net current assets, consistent shareholder equity growth, and timely filings. Being a micro-entity with limited liabilities and no overdue accounts or returns further supports a low risk assessment.

2. Key Concerns:

• Modest Asset Base: Total net assets remain relatively low (£7,631 as of April 2024), reflecting limited financial buffer against unexpected expenses.
• Concentration of Control: Single individual holds 75-100% share and voting rights, which may pose governance risks from lack of oversight.
• Limited Financial History: Incorporated in late 2021 with only a few periods of financial data available, reducing the ability to assess long-term performance trends.

3. Positive Indicators:

• Positive Working Capital: Net current assets have improved from £1,869 in 2021 to £7,631 in 2024, indicating the company can currently cover short-term liabilities.
• Regular and Timely Filings: No overdue accounts or confirmation statements, showing compliance with Companies House requirements.
• Stable Employee Base: Consistent average headcount of 3 employees suggests operational stability in staffing.
• Exemption from Audit: Eligibility for audit exemption under micro-entity provisions reduces administrative burden and suggests company size and complexity remain low.

4. Due Diligence Notes:

• Cash Flow Analysis: Obtain detailed cash flow statements to confirm liquidity beyond balance sheet snapshots.
• Profitability Trends: Review profit and loss data to assess operational sustainability and margin stability.
• Director Background: Conduct background checks on the sole director for any regulatory or legal concerns.
• Customer and Market Position: Examine client base, competitive positioning, and revenue streams to verify business viability in hairdressing industry.
• Contingent Liabilities: Investigate any off-balance sheet liabilities or pending obligations not reflected in current accounts.