LA AESTHETICS SOLUTIONS LTD

Executive Summary

LA Aesthetics Solutions Ltd exhibits severe financial weakness with mounting losses, heavy director loan dependency, and negative working capital. The company’s liquidity position is precarious, impairing its ability to meet obligations without additional capital support. Given these factors, credit facilities are not recommended at this time without significant improvements in financial health and cash flow stability.

LA AESTHETICS SOLUTIONS LTD - Analysis Report

Company Number: 13549265

Analysis Date: 2025-07-20 17:59 UTC

1. Credit Opinion: DECLINE
   LA Aesthetics Solutions Ltd shows significant negative net assets and working capital deficits for the last two years, worsening sharply in the 2024 financial year. The company’s current liabilities have surged to £53,417, mainly composed of director loans, while current assets remain low at £7,695. This indicates a strained liquidity position and heavy reliance on director funding. The persistent negative shareholders’ funds and net liabilities (-£26,964 in 2024) reflect ongoing losses and erosion of capital. Without evidence of stable or improving profitability or external financing, the company’s ability to meet short-term obligations and service any new credit facilities is compromised. Given these financial stresses and the absence of an audit or detailed profit and loss data, the credit risk is high.

2. Financial Strength:
   The balance sheet reveals a fragile financial structure. Tangible fixed assets of £18,758 suggest some capital investment, but this is outweighed by a large current liabilities position (£53,417), predominantly director loans, indicating internal funding rather than third-party finance. Negative net current assets (-£45,722) and negative equity undermine financial strength and solvency. The company’s losses have deepened over three years, with shareholders’ funds declining from -£2,709 in 2021 to -£27,064 in 2024. This deterioration signals insufficient earnings retention or capital injection to sustain operations independently.

3. Cash Flow Assessment:
   Cash on hand remains minimal (£5,862 in 2024), roughly stable but insufficient relative to current liabilities, signaling tight liquidity. The heavy reliance on director loans to cover liabilities suggests operating cash flow is negative or insufficient to meet obligations. Debtors are minimal (£1,833) and no stock is reported, so liquidity depends heavily on cash generation or continued director support. There is risk of cash flow shortfalls that could impair timely repayment of debts or operational expenses.

4. Monitoring Points:

• Track changes in director loan balances and repayment terms to assess dependency and potential creditor risk.
• Monitor improvements in net current assets and liquidity ratios, especially current ratio and quick ratio.
• Review profitability trends and cash flow statements when available to evaluate operational viability.
• Watch for any overdue filings or changes in company status that may signal distress.
• Evaluate any changes in ownership or director conduct that could affect governance or creditworthiness.