BEST TOUCH AFRO BRAIDS LTD

Executive Summary

BEST TOUCH AFRO BRAIDS LTD is a newly established micro-entity operating in hairdressing services with minimal financial activity and a negative net asset position. While regulatory filings are current and governance appears straightforward, the company faces significant solvency and liquidity risks due to its negative working capital and lack of operational scale. Further investigation into its liabilities and business plans is essential to evaluate its viability.

BEST TOUCH AFRO BRAIDS LTD - Analysis Report

Company Number: 14849620

Analysis Date: 2025-07-29 17:40 UTC

1. Risk Rating: HIGH
   The company shows negative net assets of £207 and current liabilities exceeding current assets, indicating immediate solvency concerns. Given it is a newly incorporated micro-entity with minimal financial activity and no employees, the risk of default or financial distress is elevated.

2. Key Concerns:

• Negative Net Assets: The balance sheet reveals net liabilities (£207), which suggests the company’s obligations surpass its available resources.
• Insufficient Working Capital: Current liabilities (£240) exceed current assets (£33), reflecting a liquidity shortfall that may impede meeting short-term obligations.
• No Operating Activity or Employees: The absence of employees and fixed assets raises questions about operational sustainability and revenue generation capacity.

3. Positive Indicators:

• Compliance with Filings: The company is up to date with its accounts and confirmation statement filings, demonstrating regulatory compliance.
• Clear Ownership and Control: A single director and person with significant control (PSC) is identified, which may simplify governance and decision-making.
• No Indication of Insolvency Proceedings: The company is not in liquidation, administration, or receivership, indicating it is currently solvent on a legal basis.

4. Due Diligence Notes:

• Investigate the nature of the current liabilities and the reason for the negative net asset position—are these due to start-up costs or related party loans?
• Review cash flow forecasts or business plans to assess how the company intends to improve liquidity and solvency.
• Confirm whether the company has commenced trading or generated revenue since incorporation, and understand the timeline and strategy for operational scaling.
• Assess the director’s background and financial commitment to supporting the company through initial losses or capital injections.