Company Number: 13049496

Analysis Date: 2025-07-20 13:29 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Coco Nails & Spa (Bexhill) Ltd shows recent improvement in its financial position, turning from net current liabilities and negative shareholders’ funds in 2022 to marginally positive net current assets (£161) and shareholders’ funds (£161) in 2023. However, the company remains small with limited asset base and low capital. It relies heavily on a director loan (£6,000), indicating dependence on internal financing. The business operates in the beauty treatment sector, which can be sensitive to economic cycles but also has stable demand. Given the improving trend but modest scale and thin liquidity buffers, credit approval should be conditional on continued monitoring of cash flow and maintenance of working capital.

2. Financial Strength:

• The balance sheet is very small, with total current assets of £7,622 and current liabilities of £7,461 as at 30 Nov 2023, resulting in net current assets of only £161.
• Share capital is nominal (£100), reflecting a micro company size.
• The company’s net assets turned positive in 2023 (£161) after three years of negative equity, evidencing a move toward solvency, albeit at a very low level.
• There are no fixed assets reported, so the company’s tangible asset base is minimal.
• The director loan of £6,000 is a significant part of current liabilities, suggesting reliance on internal funding rather than external debt.
  Overall, the financial strength is weak but improving.

3. Cash Flow Assessment:

• Cash at bank increased from £4,091 in 2022 to £6,529 in 2023, indicating better liquidity.
• Debtors remain low and manageable (£1,093), consistent with a small, likely service-oriented business.
• Current liabilities are stable, with no indication of overdue payables or creditor pressure.
• Working capital is positive but minimal (£161), leaving little buffer against unexpected cash flow demands.
• The company has maintained a stable employee base of 3 staff.
  Liquidity appears adequate for current scale but remains tight.

4. Monitoring Points:

• Continued improvement or stability in net current assets and shareholders’ funds to avoid slipping back into negative equity.
• Cash balances relative to liabilities to ensure the company can meet short-term obligations without director loans.
• Any increase in director loans or related party financing as an indicator of funding stress.
• Profit generation and retained earnings growth over the next reporting periods to build financial resilience.
• Timely filing of accounts and confirmation statements to maintain regulatory compliance.