Company Number: 13827230

Analysis Date: 2025-07-20 12:49 UTC

1. Risk Rating: MEDIUM
   The company shows a small but positive net asset position (£175) at the latest year-end, indicating some solvency. However, the negative net current assets position (£-1,657) and significant increase in current liabilities raise liquidity concerns. The company is very young (incorporated 2022) and small (micro-entity), which limits the financial history and operational track record.

2. Key Concerns:

• Liquidity risk: Current liabilities (£3,502) exceed current assets (£1,845) by a considerable margin, resulting in negative working capital. This could impair the company’s ability to meet short-term obligations without additional funding.
• Declining net assets: Net assets decreased substantially from £2,369 in 2023 to £175 in 2024, suggesting erosion of equity possibly due to losses or increased liabilities.
• Single director and PSC structure: The sole director and 100% PSC is also the principal operator, which may concentrate operational risk and limit governance oversight.

3. Positive Indicators:

• Compliance: The company has filed all required accounts and confirmation statements on time with no overdue filings or penalties.
• Ownership clarity: Ownership and control are transparent with the sole director also being the PSC holding 75-100% shares.
• Growing operations: The company increased average employees from 0 to 1 in the latest year, indicating some operational scaling from inception.

4. Due Diligence Notes:

• Investigate the nature and terms of current liabilities to assess repayment risk and any overdue creditor balances.
• Review profit and loss details (not publicly filed) to understand the cause of the decline in net assets and assess profitability or losses.
• Confirm if there are any related party transactions or director loans that may impact financial stability.
• Understand the business model for the two SIC codes (hairdressing/beauty treatment and taxi operation) and how these operate together operationally and financially.
• Evaluate any cash flow forecasts or bank facilities that support short-term liquidity needs.