Company Number: 15209661

Analysis Date: 2025-07-29 14:28 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   KR BAL LTD is a newly incorporated micro-entity operating in hairdressing and beauty treatment with limited financial history. The balance sheet shows modest net assets (£1,469) but a working capital deficit (-£540), indicating current liabilities exceed current assets. While the company is not in distress, the negative net current assets suggest limited liquidity to cover short-term obligations. Given the very early stage of operations and small scale, credit exposure should be tightly controlled and facilities should be limited until further financial performance data is available.

2. Financial Strength:
   The company has minimal fixed assets (£2,009) and current assets (£2,656), against current liabilities of £3,196. The negative net current assets position highlights liquidity risk. Shareholders’ funds equal net assets at £1,469, reflecting initial capital injection without retained earnings or accumulated reserves. The micro-entity status means limited financial disclosure, but the balance sheet indicates a very small capital base and modest asset base, typical for a startup in this sector.

3. Cash Flow Assessment:
   KR BAL LTD’s working capital deficit signals potential cash flow constraints. Current liabilities exceed current assets by £540, implying the company may struggle to meet short-term payables without additional capital or positive operating cash flow. No profit and loss data was provided, but given the company’s recent incorporation (October 2023) and first accounts to September 2024, it is likely still in early operational phase. Close monitoring of cash inflows and outflows is essential.

4. Monitoring Points:

• Quarterly cash flow and liquidity position to ensure short-term obligations can be met.
• Timely filing of subsequent accounts and confirmation statements to assess financial progression.
• Evidence of revenue generation and profitability improvements in the next reporting period.
• Director and shareholder actions regarding capital injections or debt facilities.
• Any changes in current liabilities profile or extension of creditor terms.