BRIGHTON AESTETICS LTD

Executive Summary

Brighton Aestetics Ltd shows a stable, though declining, financial position with positive working capital and equity. The company’s recent director changes and overdue confirmation statement highlight some governance and compliance concerns. Overall, it presents a medium risk profile warranting further investigation into financial performance and regulatory adherence before investment consideration.

BRIGHTON AESTETICS LTD - Analysis Report

Company Number: 13667050

Analysis Date: 2025-07-20 11:42 UTC

1. Risk Rating: MEDIUM
   Brighton Aestetics Ltd demonstrates modest net current assets and positive shareholders' funds, indicating an ability to meet short-term obligations. However, the company is relatively new (incorporated in 2021), with limited financial history and a significant drop in net current assets and equity from 2022 to 2023. The overdue confirmation statement filing also raises a minor regulatory compliance concern.

2. Key Concerns:

• Declining Financial Position: Shareholders’ funds decreased from £13,909 in 2022 to £6,626 in 2023, and net current assets dropped from £10,094 to £3,764, suggesting profitability or cash flow pressures.
• Overdue Confirmation Statement: The latest confirmation statement is overdue since 31 August 2024, indicating a lapse in statutory compliance which could lead to penalties or signal governance weaknesses.
• Director Turnover and Control Concentration: One director resigned in August 2023 and was replaced by a new director with the same individual controlling 75-100% of shares, indicating concentrated control and potential governance risk.

3. Positive Indicators:

• Positive Net Current Assets and Shareholders’ Funds: The company maintains a positive working capital position and equity, implying it can meet short-term liabilities.
• No Overdue Accounts Filing: The latest accounts were filed on time with no audit requirement, consistent with its small company status, reducing regulatory risk.
• Industry Focus: Operating in the hairdressing and beauty treatment sector (SIC 96020), which can have stable demand, and the company appears to have a clear operational focus.

4. Due Diligence Notes:

• Investigate the cause of the significant decrease in net current assets and shareholders’ funds between 2022 and 2023, including review of profitability, cash flow, and any extraordinary expenses or losses.
• Confirm the status and intentions regarding the overdue confirmation statement filing and evaluate overall compliance culture.
• Review director changes and concentration of control implications, including any potential related-party transactions or governance issues.
• Assess the company’s business model sustainability, client base, and competitive positioning within the beauty treatment sector.
• Consider requesting management accounts or cash flow forecasts given the limited historical data due to the company’s recent incorporation.