Company Number: 13125523

Analysis Date: 2025-07-20 15:27 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   ILUVO AESTHETICS LTD demonstrates a positive net asset position that has grown from £53,958 in 2023 to £60,942 in 2024, indicating capital accumulation and some business growth. However, the company’s net current assets have turned negative (£-4,786 in 2024 from £9,141 in 2023), reflecting potential short-term liquidity constraints. Given the company is in the micro category with limited financial history and minimal share capital (£100), credit extension should be cautious and conditional on close monitoring of working capital and cash flow improvements.

2. Financial Strength:
   The company’s balance sheet shows a steady increase in fixed assets (from £44,817 to £65,728), suggesting investment in long-term resources possibly to support future growth. Shareholders’ funds have increased significantly, indicating retained earnings or capital injection strengthening equity. However, current liabilities have grown sharply (from £31,927 to £108,592), outpacing current assets and resulting in a working capital deficit. This imbalance weakens short-term financial resilience and may impact the company’s ability to meet immediate obligations.

3. Cash Flow Assessment:
   Negative net current assets imply that current liabilities exceed current assets, potentially causing cash flow pressure. The company employs a small workforce (average 3 employees), which helps control fixed costs but also limits operational scale. Without detailed cash flow statements, the risk remains that the company may struggle with liquidity if creditors demand prompt payment. The increase in fixed assets might have been funded by short-term borrowings or trade creditors, which warrants scrutiny.

4. Monitoring Points:

• Working capital trends: Watch for improvement to positive net current assets to ensure liquidity.
• Current liabilities management: Confirm the nature and maturity of current liabilities to assess repayment risk.
• Profitability and cash flow generation: Monitor future filings for operating cash flow adequacy to service debts.
• Director’s management: As sole director and majority shareholder, ongoing assessment of governance and financial stewardship is prudent.
• Filing compliance: The company is up to date with accounts and returns, mitigating regulatory risk.