Company Number: 15268164

Analysis Date: 2025-07-29 20:06 UTC

1. Risk Rating: HIGH
   Justification: The company shows a significant net current liability position with current liabilities (£48,489) far exceeding current assets (£2,523), indicating liquidity risk. The company is newly incorporated (Nov 2023) with only one financial year of data and no audit, limiting visibility into operational stability. The substantial fixed assets relative to net assets suggest capital tied up in non-liquid form.

2. Key Concerns:

• Negative working capital of £45,966 signals potential cash flow difficulties meeting short-term obligations.
• Limited operating history and only micro-entity accounts filed without audit reduce transparency on business sustainability and financial controls.
• Change in controlling director within a short period (appointed Nov 2023, resigned Jan 2025, replaced immediately) may indicate governance or management instability.

3. Positive Indicators:

• The company is compliant with filing deadlines and no overdue accounts or confirmation statements are noted, indicating regulatory adherence.
• Shareholders’ funds of £15,436 show positive net equity despite liquidity constraints.
• The business operates in a stable sector (hairdressing and beauty treatment), which can generate steady cash flows with appropriate management.

4. Due Diligence Notes:

• Investigate the nature and liquidity of fixed assets (£61,402) to assess if they can be converted to cash to alleviate short-term liabilities.
• Obtain management accounts or cash flow forecasts to understand short-term liquidity and operational cash generation.
• Clarify reasons for director resignation and immediate appointment of a new controlling director to assess any governance or continuity risks.
• Review contracts, customer base, and business model for sustainability given the early stage of the company.