FANCY SKIN AND AESTHETICS LTD

Executive Summary

Fancy Skin and Aesthetics Ltd shows serious financial distress indicated by growing net liabilities and negative working capital, posing high solvency and liquidity risks. While compliance with filing requirements is maintained and management is stable, the company’s micro scale and ongoing losses raise concerns about operational sustainability. Further due diligence on cash flow, business viability, and potential restructuring plans is essential before considering investment.

FANCY SKIN AND AESTHETICS LTD - Analysis Report

Company Number: SC686936

Analysis Date: 2025-07-29 16:18 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns with persistent net liabilities and negative working capital increasing year-over-year. This undermines its ability to meet short-term and long-term obligations.

2. Key Concerns:

• Negative Net Assets & Shareholders’ Funds: The net liabilities worsened from -£3,104 in 2021 to -£9,430 in 2024, indicating accumulated losses and erosion of equity.
• Severe Working Capital Deficit: Net current assets are deeply negative (e.g., -£9,649 in 2024), suggesting current liabilities far exceed current assets, raising serious liquidity risks.
• Small Scale with Limited Capital: The company is micro-sized with minimal share capital (£300) and only 3 employees, which may constrain operational resilience and financial flexibility.

3. Positive Indicators:

• Timely Filing Compliance: Accounts and confirmation statements are up-to-date with no overdue filings, indicating good compliance and governance discipline.
• Stable Management Team: Same three directors since incorporation, which may provide operational continuity.
• Entitled to Audit Exemption: Being micro-entity simplifies regulatory burden and costs, which is suitable for the company’s scale.

4. Due Diligence Notes:

• Review Detailed Financial Statements: Investigate causes of recurring losses and whether any off-balance sheet liabilities or contingent risks exist.
• Assess Cash Flow Statements and Forecasts: Obtain cash flow data to evaluate short-term liquidity beyond balance sheet figures.
• Understand Business Model Viability: Examine customer base, revenue streams, and market conditions in the hairdressing and beauty treatment sector for sustainability.
• Check Directors’ Backgrounds: Confirm no adverse director conduct or disqualification records given the financial distress signals.
• Explore Capital Injection Plans: Determine if shareholders intend to recapitalize or restructure the company to restore solvency.