Company Number: 14358425

Analysis Date: 2025-07-29 21:07 UTC

1. Risk Rating: MEDIUM
   The company shows modest net assets and positive shareholders' funds, but current liabilities exceed cash balances indicating potential liquidity pressure. The business is young with limited financial history and small scale, resulting in some operational and financial uncertainty.

2. Key Concerns:

• Liquidity Position: Cash of £9,692 is insufficient to cover current liabilities of £11,882, resulting in negative net current assets (-£2,190) which could strain short-term obligations.
• Small Scale and Limited Track Record: Incorporated in 2022 with only two years of abridged accounts limits ability to assess long-term operational stability and profitability.
• Change in Control and Directors: The original controlling shareholder and director resigned in September 2023 and was replaced, raising questions about continuity and governance stability.

3. Positive Indicators:

• Compliance and Filing Status: All accounts and confirmation statements are filed on time with no overdue returns, indicating reasonable regulatory adherence.
• Modest Positive Net Assets: Net assets increased slightly from £2,553 to £2,976, showing some equity growth.
• Clear Business Focus: The company operates in defined SIC codes related to hairdressing and education services, with an active website and valid contact information supporting its operational presence.

4. Due Diligence Notes:

• Review detailed cash flow statements or management accounts to better understand liquidity management and working capital cycles.
• Investigate reasons behind director resignation and shareholding transfer to assess any underlying governance or strategic risks.
• Confirm whether the company’s revenue and profitability metrics are improving given its small employee count (2) and asset base.
• Assess any contingent liabilities or off-balance sheet exposures not visible from abridged accounts.
• Validate the sustainability of the business model in competitive hairdressing and education sectors.