Company Number: 12498621

Analysis Date: 2025-07-29 18:01 UTC

1. Risk Rating: LOW
   The company demonstrates a positive net asset position with improving net current assets and no overdue filings. The micro-entity classification limits disclosure but the available balance sheet data reflects a modestly stable financial position for a recently incorporated small business.

2. Key Concerns:

• Limited financial disclosure due to micro-entity status restricts visibility into profitability and cash flow trends.
• Relatively low fixed asset base and modest current assets highlight potential vulnerability to unexpected expenses or revenue shortfalls.
• Dependence on two directors with equal significant control could present governance risks if not managed properly.

3. Positive Indicators:

• Consistent filing compliance with accounts and confirmation statements up to date, indicating regulatory adherence.
• Significant improvement in net current assets from negative in 2023 to +£8,415 in 2025 suggests better liquidity management.
• Positive net assets increasing from £568 in 2024 to £10,466 in 2025 indicates strengthening equity position.
• Stable headcount of 3 employees suggests controlled operational scale aligned with business size.

4. Due Diligence Notes:

• Review underlying profit and loss information and cash flow statements if available, to assess operational profitability and cash generation.
• Investigate any off-balance sheet liabilities or contingent risks not disclosed in micro-entity filings.
• Assess the directors’ backgrounds and governance practices, especially given their dual control and operational roles as barbers.
• Obtain clarity on the nature of accrued income and deferred income figures which appear significant relative to current assets/liabilities.
• Understand customer base stability and competitive positioning within the hairdressing and beauty treatment sector.