Company Number: 13588702

Analysis Date: 2025-07-20 13:50 UTC

1. Risk Rating: HIGH
   The company exhibits a deteriorating financial position with net current liabilities and negative net assets as of the latest accounts. This indicates solvency challenges and potential liquidity difficulties.

2. Key Concerns:

• Negative Net Assets: The company reported net liabilities of £7,634 at 31 August 2024, down from positive net assets of £293 in 2023, indicating erosion of equity and potential solvency risk.
• Working Capital Deficit: Current liabilities (£13,699) significantly exceed current assets (£6,065), resulting in a negative net current asset position. This suggests potential cash flow constraints to meet short-term obligations.
• Limited Financial Disclosure: As a micro-entity filing filleted accounts under FRS 105, the company does not provide a profit and loss account or detailed notes, restricting insight into operational performance and cash flow generation.

3. Positive Indicators:

• Compliance and Timeliness: The company is up to date with its statutory filings (accounts and confirmation statement), indicating good regulatory compliance and governance in this respect.
• Stable Ownership and Management: Directors and persons with significant control have been recently appointed and appear to be resident and engaged locally, which may support operational continuity.
• Micro-Entity Status: The micro-entity classification suggests the company operates on a small scale, possibly reducing complexity and overheads.

4. Due Diligence Notes:

• Investigate the causes behind the sharp decline in net assets over the last financial year, including any losses or write-offs not visible in filleted accounts.
• Assess cash flow statements and profit and loss accounts if available (e.g., from management accounts) to understand operational sustainability and liquidity position.
• Review director backgrounds for any potential red flags or conflicts of interest, especially considering the recent appointment of a director in October 2024.
• Understand the impact and interplay of the two SIC activities (hairdressing and freight transport) to assess business model coherence and revenue diversification.