Company Number: SC796001

Analysis Date: 2025-07-20 14:39 UTC

1. Risk Rating: HIGH
   The company shows significant negative net current assets and shareholders' funds within its first financial year. Current liabilities far exceed current assets, indicating serious solvency and liquidity concerns at this early stage.

2. Key Concerns:

• Negative Working Capital: Net current liabilities of £24,916 signal inability to meet short-term obligations from available current assets.
• Negative Shareholders’ Funds: Equity stands at -£13,306, reflecting losses or debts exceeding the small initial share capital of £1.
• Operating with Minimal Capital: The business has just £1 in share capital and only one employee (director), with limited fixed assets and debtors, raising sustainability doubts.

3. Positive Indicators:

• Timely Filings: No overdue accounts or confirmation statements, demonstrating compliance with statutory requirements.
• Clear Ownership and Control: Single director and 100% shareholder simplifies governance and decision-making.
• Established Accounting Policies: Accounts prepared under FRS 102 small entities regime with clear depreciation and tax policies.

4. Due Diligence Notes:

• Investigate nature and timing of the £30,444 current liabilities and whether any are overdue or subject to enforcement actions.
• Review cash flow projections and planned funding to cover the negative working capital and equity deficit.
• Understand the business model and revenue generation prospects given the SIC code 96020 (hairdressing and beauty treatment) and the recorded assets and liabilities.
• Verify related party transactions or director loans that may explain the financial position.
• Confirm no hidden contingent liabilities or claims against the company.