LUXE TANNING HAIR & BEAUTY LIMITED

Executive Summary

Luxe Tanning Hair & Beauty Limited is currently financially weak, with persistent negative equity and poor liquidity, reflecting operational losses since inception. The company’s ability to service debt is highly questionable, and credit exposure would be risky without significant improvement or security. Close ongoing monitoring of cash flow and liabilities is essential if any credit consideration is made.

LUXE TANNING HAIR & BEAUTY LIMITED - Analysis Report

Company Number: 13604906

Analysis Date: 2025-07-29 20:07 UTC

1. Credit Opinion: DECLINE
   Luxe Tanning Hair & Beauty Limited demonstrates a persistently weak financial position with significant net liabilities and negative working capital. The company has accumulated losses increasing over the last three years, indicating ongoing operational challenges. The negative net current assets position suggests poor liquidity and limited ability to meet short-term obligations. Given the absence of positive equity or cash flow improvement, extending credit facilities would be high risk without substantial mitigation.

2. Financial Strength:
   The balance sheet shows net liabilities of £14,115 as of 30/09/2024, an improvement from £22,005 in 2023 but still significantly negative. Fixed assets are minimal (£7,234), and current liabilities (£21,091) substantially exceed current assets (£1,342), leading to a net current liability of £19,749. Shareholders’ funds remain negative, reflecting accumulated losses since incorporation in 2021. The company’s financial structure is fragile, with no buffer for unexpected expenses or downturns.

3. Cash Flow Assessment:
   Current assets are almost entirely cash or equivalents (£1,342), but this is dwarfed by current liabilities (£21,091), indicating liquidity stress. The company has consistently posted negative net current assets, suggesting ongoing difficulties in managing working capital. Without evidence of improved receivables collection or inventory management, short-term liquidity risk remains high. The single-employee operation implies limited operational scale, which may constrain cash inflows.

4. Monitoring Points:

• Watch for further reductions in net liabilities or movement towards positive equity.
• Monitor cash balances and timing of creditor payments to assess liquidity management.
• Observe any changes in current liabilities levels or composition, including overdue payables.
• Review director’s plans for business turnaround or refinancing efforts.
• Keep track of any delay in statutory filings or unusual director conduct.