GLOW AESTHETICS BY CHLOE LTD

Executive Summary

Glow Aesthetics By Chloe Ltd is a very small, newly established beauty treatment business with modest working capital but deteriorating net asset position, reflecting operational losses or advances received. While short-term liquidity appears adequate, the negative equity and micro scale limit financial resilience. Credit approval should be conditional on further cash flow assurances and close monitoring of financial improvements going forward.

GLOW AESTHETICS BY CHLOE LTD - Analysis Report

Company Number: 14210924

Analysis Date: 2025-07-29 13:14 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Glow Aesthetics By Chloe Ltd is a very recently incorporated micro-entity operating in the beauty treatment sector. The company shows a mixed financial position with net assets fluctuating into negative territory in the latest accounts. While current assets exceed current liabilities, indicating some short-term liquidity, the overall net asset position and accumulated losses reflected in negative shareholders' funds suggest a fragile financial footing. The lack of employees and very small turnover implied by micro status means limited operational scale. Credit approval should be conditional on obtaining further assurances about cash flow projections and owner/director financial support to service debt obligations.

2. Financial Strength:
   The balance sheet reveals net current assets of £150 as of 31 July 2024, up slightly from £147 the previous year, which indicates positive working capital. However, net assets have declined to a negative £210 from a positive £147 the year before, primarily due to accruals and deferred income increasing from £300 to £360. This negative equity position reflects accumulated losses or prepayments and indicates limited financial buffer. The company has no fixed assets and no employees, pointing to a small, asset-light operation. Overall, the financial strength is weak, with negative net worth and limited capital to absorb shocks.

3. Cash Flow Assessment:
   The current assets are minimal (£240), and current liabilities are reported as negative £90, which in context appear to represent creditor balances or deferred income rather than traditional liabilities. The company’s working capital remains positive but very limited in absolute terms. The absence of employees means payroll outgoings are likely low, but the small scale also implies limited cash inflows. The accounts show no audit and are prepared under micro-entity provisions, so detailed cash flow statements are lacking. Cash flow risks are elevated given negative net assets and dependency on director funding or ongoing business growth.

4. Monitoring Points:

• Track net asset and shareholder funds trends in subsequent filings to assess if losses continue to accumulate or are reversed.
• Monitor cash balances and creditor/deferred income levels for liquidity pressure signs.
• Review director or owner financial support arrangements to cover shortfalls during growth phase.
• Assess revenue growth and profitability development as the company matures beyond the micro stage.
• Watch for any overdue filings or changes in company status impacting credit risk.