DM HAIR & EDUCATION LTD

Executive Summary

DM Hair & Education Ltd is a recently established small private company with a positive but modest balance sheet and adequate liquidity at first year-end. While the company currently demonstrates ability to meet short-term liabilities, limited trading history warrants cautious credit provision. Continued monitoring of financial performance and compliance filings is recommended to support credit decisions going forward.

DM HAIR & EDUCATION LTD - Analysis Report

Company Number: 15199732

Analysis Date: 2025-07-29 20:59 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   DM Hair & Education Ltd is a newly incorporated private limited company with its first financial period ending 31 October 2024. The company shows positive net current assets and positive shareholders’ funds, indicating a solvent position. However, limited trading history and lack of detailed profit and loss data require cautious credit consideration. Approval is conditional on continued maintenance of positive liquidity and timely filing of future accounts and confirmation statements.

2. Financial Strength:
   As at 31 October 2024, the company reported:

• Cash balance of £6,773
• Current liabilities of £4,180
• Net current assets of £2,593
• Shareholders’ funds of £2,593
  The balance sheet is modest but positive, reflecting initial capital injection and prudent management of short-term liabilities. The absence of fixed assets and minimal share capital (£2) indicate a lightweight asset base, typical for a startup in service sectors like hairdressing and education. No audit requirement has been triggered due to small company status.

3. Cash Flow Assessment:
   The company holds adequate short-term liquidity to cover current liabilities with a cash buffer of approximately £2,500. The net current asset position shows working capital is positive, suggesting the business can meet its short-term obligations. However, the lack of employees and absence of detailed cash flow from operations data means reliance is likely on owners’ funds or early revenues. Monitoring cash inflows from operations will be critical.

4. Monitoring Points:

• Monitor timely filing of future annual accounts and confirmation statements to ensure compliance.
• Track growth in turnover and profit margins to establish sustainable cash generation.
• Keep an eye on working capital trends and creditor balances as the business develops.
• Observe any significant changes in director or shareholder structure that could impact financial stability.
• Review any emerging financial obligations or debt facilities for repayment capacity.