CUTHUB LIMITED

Executive Summary

Cuthub Limited is an early-stage micro-entity operating in the hairdressing and beauty sector with modest first-year revenues and minimal net assets. While regulatory compliance is satisfactory, the company’s limited financial resources and scale present elevated solvency and liquidity risks. Further due diligence is recommended to assess operational viability and cash flow stability before investment consideration.

CUTHUB LIMITED - Analysis Report

Company Number: 15240137

Analysis Date: 2025-07-20 17:48 UTC

1. Risk Rating: HIGH

Justification: Cuthub Limited is a newly incorporated micro-entity (incorporated October 2023) with limited financial history and minimal net assets (£2). Despite reporting a small profit (£3,388) on turnover of £32,204, the company’s balance sheet shows negligible equity and no employees, which raises concerns about its operational scale and sustainability. The directors’ occupations (hairdresser and barber) suggest a small local business likely reliant on owner-operator involvement. There is no indication of material financial buffers or external financing, which increases solvency and liquidity risk.

2. Key Concerns:

• Minimal net assets and working capital indicated by total net assets of only £2, implying very limited financial resilience against downturns or unexpected liabilities.
• Absence of employees and minimal scale of operations may constrain the company’s ability to grow or manage cash flow fluctuations.
• Early stage of the company with only one financial year reported, limiting visibility into consistent profitability or operational stability.

3. Positive Indicators:

• Timely filing of both accounts and confirmation statement with no overdue filings, reflecting good regulatory compliance to date.
• Reported profit for the first financial period suggests initial business viability.
• Clear ownership and control structure with two directors/shareholders actively involved, which may support decisive management.

4. Due Diligence Notes:

• Investigate underlying cash flow dynamics and any related party transactions given the minimal net assets and absence of employees.
• Review business plan and projections to assess sustainability and planned growth trajectory.
• Confirm nature and extent of any off-balance sheet obligations or contingent liabilities, although none are currently disclosed.
• Validate operational capacity given the reported activities under SIC codes for hairdressing and unlicensed cafes, particularly how the business manages dual service lines if applicable.