Company Number: SC702605

Analysis Date: 2025-07-29 14:05 UTC

1. Credit Opinion: DECLINE

Reasoning: DR AMY AESTHETICS LIMITED shows a concerning deterioration in financial health over the latest reporting period. The company’s shareholders’ funds plummeted from £28,177 in 2023 to just £88 in 2024, indicating near insolvency in equity terms. Current liabilities surged from £930 to £24,631, drastically outpacing current assets which declined from £32,290 to £26,051. The resultant working capital deficit suggests liquidity stress and potential difficulty in meeting short-term obligations. Furthermore, provisions for liabilities have increased, signaling possible contingent liabilities or risks. Absence of employees and minimal fixed assets imply a very small operational scale, increasing vulnerability. The company’s micro-entity status and lack of audit limit transparency. Given these red flags and diminishing net assets, the company currently lacks sufficient financial strength to support additional credit without substantial mitigating factors.

2. Financial Strength:

• Shareholders funds almost wiped out, from £28,177 (2023) to £88 (2024), indicating erosion of net worth.
• Fixed assets minimal but newly acquired (£3,656), not sufficient to offset liabilities.
• Provisions for liabilities increased to £4,988, further weakening equity.
• The balance sheet size remains small (around £30k total assets), typical for a micro company but volatile.
• Current liabilities have ballooned disproportionately to current assets.
• Overall, financial strength is weak with very limited buffer to absorb shocks.

3. Cash Flow Assessment:

• Negative net current assets position (Current assets £26,051 less current liabilities £24,631) yields a working capital of only about £1,420, marginal at best.
• Increase in current liabilities by over 25 times within a year suggests cash flow stress or accrual of unpaid debts.
• No evidence of employees or reported operational scale to generate robust cash inflows.
• Liquidity risk is high; potential difficulties in covering day-to-day expenses and short-term debts.
• No audit or detailed cash flow statement available to verify cash generation ability.

4. Monitoring Points:

• Track quarterly or interim financial updates to monitor liquidity and working capital trends.
• Watch for improvements in shareholders’ funds and reduction in provisions/liabilities.
• Monitor director conduct and any changes in business model or scale.
• Review payment patterns and credit terms with suppliers.
• Observe any additional financial support from the sole shareholder or external financing.