BRAIDSDAVIVY SALON LIMITED

Executive Summary

Braidsdavivy Salon Limited is a newly incorporated micro-entity in the hairdressing sector showing early financial distress with negative net assets and working capital deficits. While statutory filings are current and governance appears sound, the company faces significant solvency and liquidity risks that warrant careful monitoring and further inquiry into its operational plans and financial support structure.

BRAIDSDAVIVY SALON LIMITED - Analysis Report

Company Number: 15611461

Analysis Date: 2025-07-29 20:50 UTC

1. Risk Rating: HIGH
   The company shows negative net current assets and net assets of £(2,474) in its first financial year despite being micro-entity sized. This indicates immediate solvency concerns and inability to meet short-term liabilities from current assets.

2. Key Concerns:

• Negative Working Capital: Current liabilities (£3,259) exceed current assets (£785) by a significant margin, leading to a working capital deficit of £(2,474). This suggests liquidity stress and potential cash flow difficulties.
• Negative Net Assets: The company’s net assets and shareholders’ funds are negative, indicating an erosion of equity which can impair operational sustainability and financing options.
• Early Stage with Limited Financial History: Incorporated in April 2024 and reporting first accounts for 13 months, there is limited financial track record to assess operational viability or revenue generation, adding uncertainty.

3. Positive Indicators:

• Compliance with Filing Requirements: Accounts and confirmation statement filings are up to date and not overdue, showing good governance on statutory compliance.
• Single Director with Full Control: Clear ownership and control by one individual (Elvira Da Costa Barreto Aguiar) may streamline decision making and accountability.
• Micro Entity Reporting: The company benefits from simplified reporting under FRS 105, which reduces administrative burden at this early stage.

4. Due Diligence Notes:

• Investigate the nature of current liabilities and whether these include any director loans or related party transactions that might influence repayment terms.
• Assess planned revenue streams, business model viability, and management’s strategy to address negative working capital and restore positive equity.
• Verify whether there are any contingent liabilities or off-balance sheet obligations not reflected in the accounts.
• Review cash flow projections and funding sources to confirm liquidity sustainability over the next 12 months.