Company Number: 15393524

Analysis Date: 2025-07-20 13:48 UTC

1. Risk Rating: MEDIUM
   The company is newly incorporated with limited operating history and modest net current assets of £1,460. While it is not overdue on filings and shows positive working capital, the presence of director loans as short-term liabilities and limited cash reserves suggest moderate solvency and liquidity risk.

2. Key Concerns:

• Liquidity Risk: Cash balance is only £795 against current liabilities of £2,280, indicating potential short-term cash flow constraints.
• Director Loans: £1,879 of current liabilities represent loans from directors, which may indicate reliance on shareholder funding rather than operating cash flow. This reliance can pose risk if funding is withdrawn or not renewed.
• Limited Operating History and Scale: Incorporated January 2024, the company has minimal financial history and small scale (3 employees), which limits assessment of operational sustainability and growth prospects.

3. Positive Indicators:

• Positive Net Current Assets: Despite small scale, net current assets are positive at £1,460, signaling the company is not currently insolvent.
• Timely Filing and Compliance: No overdue accounts or confirmation statements, and accounts prepared under appropriate accounting standards with no audit requirement, indicate good regulatory compliance.
• Shareholder Control and Stability: Ownership is consolidated with two directors/shareholders who appear to maintain control, which may facilitate clear decision-making.

4. Due Diligence Notes:

• Review director loan agreements to understand terms, repayment expectations, and any potential risks if these loans are withdrawn.
• Assess cash flow forecasts to evaluate ability to meet short-term obligations without relying excessively on director loans.
• Investigate operational performance and client base to gauge sustainability and growth potential in the competitive hairdressing and beauty treatment sector.
• Confirm that no undisclosed liabilities or contingent risks exist beyond the current limited financial disclosures.