DANIEL HENRY BARBERSHOP LIMITED

Executive Summary

Daniel Henry Barbershop Limited, a small, active private limited company in the hairdressing sector, currently faces liquidity pressures evidenced by negative net current assets and low cash relative to liabilities. While the company is compliant with filing requirements and holds tangible assets, the erosion of net assets and working capital deficits suggest medium risk to solvency and operational stability. Further due diligence on cash flows and liabilities is recommended to assess ongoing viability.

DANIEL HENRY BARBERSHOP LIMITED - Analysis Report

Company Number: 12835892

Analysis Date: 2025-07-20 15:29 UTC

1. Risk Rating: MEDIUM
   The company shows ongoing net current liabilities and low net assets, indicating some solvency and liquidity pressures. However, it remains active, compliant with filings, and has tangible assets, mitigating immediate high risk.

2. Key Concerns:

• Persistent negative net current assets (£-1,704 at 31 March 2024), suggesting liquidity constraints that could impair meeting short-term obligations.
• Low cash balance (£1,814) relative to current liabilities (£3,518) increases risk of cash flow difficulties.
• Declining net assets from £414 in 2023 to £119 in 2024, indicating erosion of equity and potential weakening financial position.

3. Positive Indicators:

• Company is up to date with both accounts and confirmation statement filings, reflecting regulatory compliance and good governance practices.
• Tangible fixed assets (£2,279) provide some asset backing beyond cash, potentially usable to support operations or secure financing.
• Sole director control (Mr. Daniel Cunningham) implies centralized management, which may allow for swift decision-making.

4. Due Diligence Notes:

• Review the company’s recent profit and loss trends and underlying cash flow statements (not provided) to better understand operational performance and liquidity dynamics.
• Investigate the nature and timing of current liabilities to assess whether any are overdue or at risk of crystallizing into default.
• Examine any contingent liabilities or off-balance sheet risks not disclosed in the filleted accounts.
• Clarify director’s plans or strategies to restore positive working capital and strengthen equity.