BEAUTY OF THY BROW LTD

Executive Summary

BEAUTY OF THY BROW LTD is a micro-entity with minimal equity and significant long-term liabilities, resulting in a medium solvency risk. While short-term liquidity appears sufficient and statutory compliance is maintained, the company’s financial buffer is very thin, warranting close monitoring of creditor obligations and cash flow. Further due diligence on creditor terms and operational cash generation is advised to confirm financial stability.

BEAUTY OF THY BROW LTD - Analysis Report

Company Number: 12620898

Analysis Date: 2025-07-20 18:56 UTC

1. Risk Rating: MEDIUM
   The company shows a marginally positive net asset position in the most recent accounts but with very low equity (£16). The presence of significant long-term liabilities nearly equal to current assets raises concerns about solvency and financial resilience.

2. Key Concerns:

• Extremely low net assets and shareholders’ funds indicate minimal financial buffer and potential vulnerability to adverse events.
• Large amounts of creditors due after more than one year (£38,469 in 2022) relative to current assets may strain cash flows and pose refinancing risk.
• The company is a micro-entity with only one employee and minimal capital, which may limit operational scalability and ability to absorb shocks.

3. Positive Indicators:

• The company is active and compliant with filing deadlines; no overdue accounts or confirmation statements noted.
• Stable current assets around £49k and net current assets positive, suggesting short-term liquidity is currently maintained.
• Single director and 100% owner actively involved, which may allow for swift decision-making and control.

4. Due Diligence Notes:

• Review details and terms of long-term creditors to assess repayment schedules and covenants.
• Investigate cash flow statements and management accounts for recent periods to validate liquidity and operational cash generation.
• Confirm if there have been any material changes in trading or business model since the last filed accounts, given limited size and resources.
• Assess director’s plans for capital injection or debt restructuring to improve equity base.