Company Number: 14225380

Analysis Date: 2025-07-20 11:23 UTC

1. Credit Opinion:
   DECLINE. CQ Aesthetics Limited is a newly incorporated micro-entity (founded July 2022) operating in the beauty treatment sector. Its first financial year ended July 2023 shows a negative net current assets position (£-5,122), indicating working capital deficiency. The company has minimal fixed assets (£6,849) and current liabilities exceeding current assets. Given the micro scale, negative working capital, and lack of profitability or cash flow data, it appears unable to comfortably service new debt or credit lines at this stage. The absence of audit and limited financial history further increase risk.

2. Financial Strength:
   The company’s balance sheet is very thin with total net assets of only £1,727, comprised mainly of fixed assets and current assets offset by short-term creditors. The negative net current assets position signals potential liquidity stress. As a micro entity with only one employee and limited operating history, it lacks financial depth and resilience. Shareholder funds are nominal, reflecting initial capital injection without retained earnings or reserves. This weak equity base restricts cushioning against operational or market shocks.

3. Cash Flow Assessment:
   Current liabilities (£22,455) exceed current assets (£17,333), producing a working capital deficit of £5,122. This suggests the company may struggle to meet short-term obligations from operating cash inflows or liquid assets. No cash flow statement is available, but the negative working capital combined with micro entity status implies limited cash generation capability. The company is likely dependent on continual owner funding or external support to sustain operations.

4. Monitoring Points:

• Track successive annual accounts to observe improvements in net current assets and shareholder funds.
• Monitor liquidity ratios (current ratio, quick ratio) to assess ongoing ability to cover short-term debts.
• Observe any changes in creditor days or supplier payment terms that could indicate cash flow stress.
• Review credit application details for any new borrowings or credit facilities and their repayment performance.
• Keep watch on director’s accounts filings and any changes in ownership or management that may impact governance.