Company Number: 12832305

Analysis Date: 2025-07-20 15:27 UTC

1. Risk Rating: LOW

Justification: CHARLOTTE’S SILSOE LIMITED demonstrates a solid net asset position (£51,321) with positive working capital (£30,391) and a strong cash balance (£80,472) as of the latest financial year end (31 August 2024). The company is compliant with filing deadlines, is active, and shows growth in tangible assets and employee count, indicating operational expansion and stability.

2. Key Concerns:

• The company’s share capital is nominal (£1), which limits equity buffer in case of financial distress.
• Profit and loss details are not disclosed publicly as the company filed abridged accounts and chose not to file the P&L account, restricting visibility on profitability or cash flow trends.
• Rapid increase in tangible assets and employees over a short period (from zero fixed assets in 2023 to £20,930 in 2024; employees from 8 to 12) may require further scrutiny to confirm sustainable growth and capital expenditure justification.

3. Positive Indicators:

• Strong liquidity position evidenced by cash balance of over £80k and net current assets of £30k, suggesting the company can meet short-term obligations comfortably.
• Steady growth in net assets from £1,281 in 2023 to £51,321 in 2024, reflecting improved financial health.
• No overdue filings and a single director with clear ownership and control, which reduces governance complexity.
• The business operates in the hairdressing and beauty treatment sector (SIC 96020), typically cash generative with moderate capital requirements.
• Employment growth from 8 to 12 staff implies expanding operations and potential revenue increase.

4. Due Diligence Notes:

• Review internal management accounts or obtain profit and loss data to assess profitability trends and cash flow sustainability.
• Verify the nature and financing of fixed asset acquisitions totaling £25,524, ensuring these are aligned with business strategy and not over-leveraging.
• Confirm the absence of contingent liabilities or off-balance sheet obligations not captured in abridged accounts.
• Investigate the business model and customer base to validate operational stability and growth prospects.
• Validate the director’s background and confirm no adverse conduct or regulatory issues given sole control.