HOUSE OF BALAYAGE BY NETO ASSIS LTD

Executive Summary

HOUSE OF BALAYAGE BY NETO ASSIS LTD is in a stable but fragile financial position typical of a newly established micro-entity. The company shows positive net assets and compliance but has minimal financial cushion. Strategic focus on improving working capital, cash flow, and profitability will be key to building a healthy and sustainable business foundation.

HOUSE OF BALAYAGE BY NETO ASSIS LTD - Analysis Report

Company Number: 15660505

Analysis Date: 2025-07-29 13:32 UTC

Financial Health Assessment Report: HOUSE OF BALAYAGE BY NETO ASSIS LTD

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1. Financial Health Score: B-

Explanation:
This new micro-entity company shows a very modest but positive financial position with net current assets of £174 and no overdue filings. While the financial "vital signs" suggest the business is solvent and compliant, the scale of operations and available resources are minimal, reflecting early-stage business status with limited financial resilience. The grade "B-" reflects a stable but fragile financial condition typical of a start-up micro enterprise.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	4,179	Cash and short-term assets available
Current Liabilities	4,005	Debts due within one year
Net Current Assets (Working Capital)	174	Positive but very slim margin, indicating limited buffer to cover short-term obligations
Total Assets Less Current Liabilities	174	Positive net asset base, small but stable
Net Assets (Shareholders' Funds)	174	Equity backing the business, fully positive
Number of Employees	1	Very small workforce, typical of micro-entity
Account Category	Micro	Minimal filing requirements, small scale

Interpretation:

• Healthy cash flow signs: The company’s current assets just exceed its current liabilities, indicating it can meet short-term debts.
• Symptoms of early-stage business: The very low net assets and working capital suggest the company is in its infancy, with limited financial cushion.
• Compliance: No overdue accounts or returns, showing responsible governance and financial discipline.

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3. Diagnosis: Overall Financial Condition

The financial "pulse" of HOUSE OF BALAYAGE BY NETO ASSIS LTD is steady but weak — akin to a patient who is stable but requires careful monitoring and nourishment. The company has just launched (incorporated April 2024) and filed its first accounts for the year ending March 2025. The slim net current assets reflect a start-up with minimal capital and activity. There is no indication of distress or insolvency, but the business is vulnerable to any unexpected financial shocks given the lack of substantial reserves.

The sole director and shareholder holds full control, which can allow swift decision-making but also concentrates risk. The company operates in the hairdressing and beauty treatment industry, which typically relies on cash flow management and client retention.

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4. Recommendations: Improving Financial Wellness

To build a healthier financial future and strengthen resilience, the company should consider the following steps:

• Boost Working Capital: Increase current assets through retained earnings, additional investment, or credit facilities to create a stronger buffer against liabilities.
• Cash Flow Management: Implement rigorous cash flow forecasting to avoid liquidity crunches. Prioritize timely invoicing and expense control.
• Build Reserves: Aim to generate and retain profits to increase net assets and shareholder funds. Even small profits build financial immunity over time.
• Regular Financial Monitoring: Establish monthly or quarterly financial reviews to detect any "symptoms" of distress early. Utilize simple accounting software tailored for micro businesses.
• Growth Planning: Develop strategic plans to expand client base and revenues steadily, ensuring the business scales without overextending financially.
• Compliance Vigilance: Continue timely filing of accounts and confirmation statements to avoid penalties and maintain good standing.
• Risk Management: Consider basic insurance to protect against operational risks common in service industries.

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