Company Number: 14379531

Analysis Date: 2025-07-29 19:34 UTC

1. Risk Rating: HIGH
   The company shows a significant deterioration in financial position over the latest year, moving from positive net current assets and net assets in 2023 to negative figures in 2024. This raises concerns about solvency and liquidity risk.

2. Key Concerns:

• Negative Net Current Assets: As of 31 March 2024, net current liabilities stand at £3,977, indicating a working capital deficit and potential difficulties in meeting short-term obligations.
• Negative Shareholders’ Funds: The company equity is negative (£3,977), suggesting that liabilities exceed assets, which may impair financial stability and creditor confidence.
• Limited Financial History and Micro Entity Status: Incorporated in late 2022, the company has limited operating history and only micro-entity accounts are filed, restricting available financial detail and transparency.

3. Positive Indicators:

• Compliance with Filings: The company is up to date with both accounts and confirmation statement filings, demonstrating adherence to statutory requirements.
• Stable Management: The two directors, who are also significant controllers, have maintained continuous appointments since incorporation, indicating management stability.
• Growing Workforce: Average employees increased from 2 to 3 in the latest year, which may suggest modest operational growth or activity expansion.

4. Due Diligence Notes:

• Investigate Causes of Financial Deterioration: Understanding the reasons behind the drop in current assets and increase in current liabilities between 2023 and 2024 is critical.
• Review Cash Flow and Debt Obligations: Examine detailed cash flow statements and creditor schedules to assess liquidity pressures and repayment capacity.
• Assess Business Model Sustainability: Given the SIC code for hairdressing and beauty treatment, evaluate market position, client base, and revenue streams for operational viability.
• Confirm No Related Party or Contingent Liabilities: Scrutinize notes to accounts or other disclosures for off-balance sheet risks or director-related transactions.