DISCREET AESTHETICS LIMITED

Executive Summary

Discreet Aesthetics Limited is a micro-entity showing improvement from previous financial distress, with net assets turning positive in the latest year. However, persistent liquidity shortfalls and limited operational scale present moderate risks. The company maintains good regulatory compliance, but further investigation into cash flows and business sustainability is recommended before investment consideration.

DISCREET AESTHETICS LIMITED - Analysis Report

Company Number: 13466350

Analysis Date: 2025-07-29 12:19 UTC

1. Risk Rating: MEDIUM
   Discreet Aesthetics Limited shows signs of financial recovery from prior losses but continues to display liquidity constraints and low working capital, which pose a moderate risk to solvency and operational stability.

2. Key Concerns:

• Negative net current assets in both 2023 and 2024 indicate ongoing liquidity challenges; current liabilities significantly exceed current assets (£5,551 vs £1,261 in 2024), raising concerns about the company’s ability to meet short-term obligations.
• Historical losses reflected in prior year net liabilities (-£18,293 in 2023) suggest previous financial distress, although there is an improvement in 2024. Recovering from such deficits may limit access to external financing or investment.
• The company operates as a micro-entity with only one employee (the director), implying limited operational capacity and potential vulnerability to business disruption or dependency on a single individual.

3. Positive Indicators:

• The company improved its net asset position significantly from a negative £18,293 in 2023 to a positive £9,013 in 2024, suggesting some turnaround in financial health.
• No overdue filings for accounts or confirmation statements indicate good compliance with regulatory requirements, reducing governance risk.
• Ownership and control are concentrated in a single director who is actively involved, which may enable agile decision-making and focused management.

4. Due Diligence Notes:

• Investigate the nature and timing of the liabilities constituting current liabilities to assess repayment schedules and potential refinancing risks.
• Review cash flow statements or management accounts (not provided) to understand liquidity dynamics and whether the company generates positive operating cash flows.
• Confirm the underlying causes of the prior year losses and the measures implemented to achieve the improved net asset position in 2024.
• Assess the sustainability of the business model given the small scale of operations and reliance on one employee/director.
• Verify any contingent liabilities or off-balance sheet obligations not disclosed in the micro-entity accounts.
• Review the company’s customer base, contracts, and market position in the hairdressing and beauty treatment sector (SIC 96020) to evaluate operational stability prospects.