JAMES DUNS HOUSE HAIR SCHOOL LIMITED

Executive Summary

James Duns House Hair School Limited is a small, newly incorporated entity with a stable but limited financial base heavily reliant on related party transactions. While current working capital is positive, cash reserves are low and liquidity is dependent on intercompany balances, warranting cautious credit exposure with conditions for ongoing monitoring. Continued assessment of cash flows and trading activity is essential to confirm creditworthiness over time.

JAMES DUNS HOUSE HAIR SCHOOL LIMITED - Analysis Report

Company Number: SC745074

Analysis Date: 2025-07-29 20:43 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   James Duns House Hair School Limited is an early-stage private limited company incorporated in September 2022. The company shows modest but positive net current assets, indicating a working capital surplus. However, a significant portion of current liabilities (£12,000) and debtors (£18,000) are amounts owed to and from related parties ("participating interests"), which may limit the independence and reliability of cash flow from operations. The absence of employees and limited operating history restricts the ability to fully assess ongoing trading performance and resilience. Credit should be extended cautiously with conditions such as regular financial monitoring and possible personal guarantees from directors.

2. Financial Strength:
   The balance sheet as of 30 April 2024 reports total net current assets of £5,613, stable compared to the previous year (£5,540). Shareholders' funds equal the net assets at £5,613, reflecting no long-term borrowings or fixed assets. The company’s financial position is currently stable but thin, with low cash reserves (£1,128) and a dependence on intra-group balances. The capital structure is minimal, and there is no indication of profitability or retained earnings growth beyond initial capital injection.

3. Cash Flow Assessment:
   Cash at bank has decreased from £8,038 to £1,128 year-on-year, which may indicate cash outflows or reinvestment. The company's liquidity is constrained, with current liabilities at £13,517 exceeding cash but covered by debtors (mainly intercompany). The reliance on amounts owed by participating interests for liquidity is a potential risk if these balances are not settled timely. No employees suggest low operating expenses, but cash flow from trading is unverified. Close attention should be paid to cash collections and payments cycles.

4. Monitoring Points:

• Timely settlement of intercompany debts and credits to ensure liquidity is maintained.
• Cash flow trends and whether cash balances stabilize or improve.
• Any development of trading activity and revenue generation beyond related party transactions.
• Directors’ adherence to filing deadlines and provision of updated financial information.
• Signs of diversification of debtor base and reduction in related-party balances.