Company Number: 13270878

Analysis Date: 2025-07-20 17:58 UTC

1. Risk Rating: MEDIUM
   The company is currently active with timely filings and positive net current assets as of the latest accounts. However, the very limited scale of operations, low cash reserves, and recent director changes raise concerns about operational stability and continuity of control.

2. Key Concerns:

• Low Capitalization and Cash Reserves: Share capital is nominal (£1), and cash holdings are minimal (£2,312 at year end), which may constrain the company’s ability to absorb financial shocks or invest in growth.
• Fluctuating Net Current Assets: Net current assets decreased from £1,955 in 2023 to £347 in 2024, indicating potential strain on working capital or increased liabilities.
• Recent Director Change: The resignation of a founding director and appointment of a new director within the same month may reflect internal governance or strategic shifts that require monitoring.

3. Positive Indicators:

• Compliance with Filing Requirements: The company has no overdue accounts or confirmation statements, demonstrating good regulatory compliance.
• Positive Net Current Assets and Shareholders’ Funds: Despite fluctuations, the company maintains positive net current assets and equity, indicating solvency at the balance sheet date.
• Growing Employment: The average monthly employees increased from 1 to 2, suggesting some operational growth or scaling.

4. Due Diligence Notes:

• Investigate the reasons and impact of the recent director change, including any implications for business strategy or governance.
• Review detailed cash flow information (not provided) to assess liquidity trends and ability to meet short-term obligations.
• Assess the business model’s sustainability given the limited asset base and small scale, particularly in the competitive hairdressing and beauty treatment sector.