JULIE HIRST HYPNOTHERAPY LTD

Executive Summary

JULIE HIRST HYPNOTHERAPY LTD demonstrates significant financial stress with negative net assets and liquidity shortfalls as of its latest filings. While regulatory compliance is maintained, the company’s micro scale and lack of employees raise concerns about its operational sustainability. Further due diligence into cash flows, liabilities, and business viability is essential before considering investment.

JULIE HIRST HYPNOTHERAPY LTD - Analysis Report

Company Number: 13970170

Analysis Date: 2025-07-29 19:35 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net asset position and net current liabilities, indicating financial distress and potential solvency concerns despite being an active private limited company.

2. Key Concerns:

• Negative Net Assets: The balance sheet shows net liabilities of £3,825 at 31 March 2025, worsening from £2,831 the prior year, signaling erosion of shareholder funds and potential insolvency risk.
• Current Liabilities Exceed Current Assets: Current liabilities (£7,079) significantly exceed current assets (£64), resulting in negative net current assets of £7,015, which raises liquidity concerns regarding the company’s ability to meet short-term obligations.
• No Employees and Limited Operational Scale: The company reports zero employees and minimal fixed assets, suggesting a very small-scale operation that may lack sufficient operational capacity or diversification to sustain business growth or absorb financial shocks.

3. Positive Indicators:

• Timely Filing and Compliance: The company is up to date with both accounts and confirmation statement filings, with no overdue reports, indicating good regulatory compliance and governance in that respect.
• Single Director with Significant Control: The sole director, Julie Hirst, holds full ownership and control, which may allow for swift decision-making and streamlined management.
• Micro-Entity Status: As a micro-entity, the company benefits from simplified reporting requirements, reducing administrative burdens and costs.

4. Due Diligence Notes:

• Review of Cash Flow and Profitability: Detailed inquiry into cash flow statements and profit and loss accounts is needed (not provided here) to assess operational viability and how negative net assets arose.
• Examination of Debt Structure: Investigate the nature and timing of current liabilities to determine if these are trade payables, loans, or other obligations and assess risk of default or restructuring needs.
• Business Model Viability: Clarify the company’s business activities, client base, and revenue streams given the micro scale and zero employees to understand sustainability prospects.
• Director’s Future Plans: Assess any plans by the director to recapitalize, reduce liabilities, or otherwise improve financial health.