H & CO BARBERS LTD

Executive Summary

H & CO Barbers Ltd operates with a modest equity base and manageable compliance record but shows signs of solvency pressure due to long-term liabilities and a shrinking fixed asset base. Liquidity appears tight with current assets barely exceeding current liabilities. Further analysis of cash flows and creditor terms is recommended to fully assess financial stability and operational sustainability.

H & CO BARBERS LTD - Analysis Report

Company Number: 12715724

Analysis Date: 2025-07-29 19:15 UTC

1. Risk Rating: MEDIUM
   The company demonstrates a modest net asset position and continues to operate actively with no overdue filings. However, the presence of long-term creditors and a significant reduction in fixed assets alongside limited equity base suggests some solvency and liquidity pressures.

2. Key Concerns:

• Long-term liabilities remain material (£10,000 in 2023), which is significant relative to net assets (£1,859), indicating potential solvency risk if cash flows weaken.
• Decline in fixed assets from £15,067 in 2022 to £10,078 in 2023, which may reflect asset disposals or depreciation impacting operational capacity or collateral value.
• Narrow net current assets (£1,781 in 2023) with current liabilities almost equal to current assets, posing liquidity constraints if receivables or cash inflows are delayed.

3. Positive Indicators:

• The company has maintained compliance with filing deadlines for accounts and confirmation statements, reflecting good governance and regulatory adherence.
• Net assets have increased from £908 in 2022 to £1,859 in 2023, evidencing some retained earnings or capital injection improving the equity buffer.
• Stable employee count (3 employees) suggests operational continuity and controlled cost base in the hairdressing sector.

4. Due Diligence Notes:

• Review detailed notes on the composition and maturity profile of long-term creditors to assess refinancing risk or repayment obligations.
• Investigate reasons for fixed asset decline and whether it impacts the company’s service delivery or earning capacity.
• Examine cash flow statements and profit & loss accounts to assess revenue trends, profitability, and working capital management beyond balance sheet snapshots.
• Confirm no director disqualifications or regulatory actions against the current directors (Mr Ian Robert Hughes and Mr Joshua Robert Hughes).
• Verify any contingent liabilities or off-balance sheet obligations not reflected in micro-entity accounts.