Company Number: 14383919

Analysis Date: 2025-07-20 13:12 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Kim Henry Limited is a very young private limited company operating in the hairdressing and beauty treatment sector. The company shows a modest but positive net asset base (£4,270 as of 2024) and net current assets (£1,976), indicating some short-term liquidity to meet obligations. However, the cash position has decreased significantly from £7,246 in 2023 to £1,735 in 2024, which may constrain immediate payment capability. The company has grown slightly in tangible fixed assets and has increased its debtor balances, suggesting some business expansion. Given the limited financial history and small scale, credit can be extended but should be conditional on monitoring cash flow closely and limiting exposure until a stronger liquidity position is demonstrated.

2. Financial Strength:
   The balance sheet indicates a small but positive net asset position with shareholders' funds broadly stable around £4,270-£4,441 over the last two years. Fixed assets have increased to £2,294, showing some investment in plant and equipment likely related to business operations. Current liabilities have decreased from £4,675 to £3,451, improving working capital. However, the company's total asset base remains very modest, reflecting its micro-entity status. The business is capitalized mainly through retained earnings rather than external equity or debt. Overall, the financial strength is adequate for its size but limited in scale and scope.

3. Cash Flow Assessment:
   The cash on hand has dropped sharply from £7,246 in 2023 to £1,735 in 2024, indicating potential liquidity pressures. Although net current assets remain positive due to increased debtors and reduced creditors, the reliance on debtor collections may delay cash availability. The company’s average workforce increased from 2 to 3 employees, which could pressure cash flow if not matched by revenue growth. Working capital management will be critical, and the company should maintain tight control over receivables and payables to avoid liquidity issues.

4. Monitoring Points:

• Cash balance and liquidity trends: Watch for continued cash erosion or improvement.
• Debtor ageing and collection efficiency: Increased debtors could pose risk if not collected timely.
• Profitability and turnover growth: Since turnover data is not provided, monitor future filings for revenue trends.
• Management of payables: Ensure creditors are managed to maintain good supplier relationships without straining cash flow.
• Any changes in director or ownership structure, especially given sole control by Mrs. Thi Kim Dung Tran.