Company Number: 14124399

Analysis Date: 2025-07-20 14:19 UTC

1. Credit Opinion: APPROVE
   FL AESTHETICS LTD is a micro-entity with a positive and improving net asset position over the last two years. The company shows growth in net current assets from £4,090 in 2023 to £13,369 in 2024, indicating improved liquidity and financial stability. The director, Francesca May, appears to have full control and has maintained compliance with filing deadlines. The business operates in the hairdressing and beauty treatment sector, a service industry with moderate risk but manageable for a small enterprise. Given the financial trajectory and no signs of distress or overdue filings, the company is capable of servicing modest credit facilities.

2. Financial Strength:
   The balance sheet shows a healthy net asset base of £13,369 as of 31 May 2024, up from £4,090 the previous year. Current assets primarily consist of cash or equivalents, with current liabilities well covered, resulting in a positive working capital position. There are no long-term liabilities reported, reflecting a clean balance sheet with no apparent leverage or financial encumbrances. The micro-entity status limits detailed disclosure, but the available data points to a financially prudent operation with incremental growth.

3. Cash Flow Assessment:
   Net current assets increased significantly to £13,369, indicating strengthened liquidity to meet short-term obligations. The ratio of current assets to current liabilities is approximately 2.2x, which is a comfortable liquidity cushion. The company employs only one staff member, suggesting limited payroll pressures. While detailed cash flow statements are not provided, the increase in net assets and current assets implies positive cash generation or capital injection. Working capital is sufficient for ongoing operational needs.

4. Monitoring Points:

• Maintain or improve liquidity ratios to ensure continued ability to meet short-term commitments.
• Monitor turnover and profit trends as the company grows beyond micro-entity status to assess scalability and risk.
• Observe director conduct and any changes in ownership/control that could affect governance.
• Watch for any material increases in liabilities or delays in statutory filings that may indicate financial stress.
• Track industry sector risks, especially impacts from economic downturns on discretionary consumer spending in beauty services.