LUXURY HAIRS BY ZOEY LTD

Executive Summary

Luxury Hairs by Zoey Ltd is a newly established micro-entity with a solid opening balance sheet and positive working capital indicating initial financial stability. The company’s limited trading history and small scale warrant conservative credit exposure with ongoing monitoring of financial performance and liquidity. Approval is recommended with conditions to reassess once more financial data becomes available.

LUXURY HAIRS BY ZOEY LTD - Analysis Report

Company Number: 15637485

Analysis Date: 2025-07-20 14:57 UTC

1. Credit Opinion: APPROVE with caution. Luxury Hairs by Zoey Ltd is a newly incorporated micro-entity with a very small asset base and minimal liabilities. The company shows positive net assets and working capital, indicating an ability to meet short-term obligations. However, its short trading history (first full year ending April 2025) limits visibility on sustainable cash generation and credit repayment capacity. Given the micro scale and single director/shareholder control, credit exposure should be modest and reviewed regularly.

2. Financial Strength: The balance sheet as of 30 April 2025 shows total net assets of £5,205, supported by fixed assets worth £3,416 and net current assets of £1,789. There are no long-term liabilities or provisions, which points to a clean financial position. Shareholders’ funds equal net assets, reflecting the absence of debt. This micro-entity classification aligns with the low asset and employee base. Overall, the financial strength is adequate for the company’s scale but limited in buffer capacity.

3. Cash Flow Assessment: Current assets of £2,142 against current liabilities of £353 yield a healthy working capital position. This implies sufficient liquidity to cover short-term obligations. However, the company’s cash flow generation and operating income are not disclosed, which is typical for a micro-entity. The presence of only one employee and the nature of retail sale via mail order/Internet suggest relatively low operational complexity but also limited cash inflows. Monitoring cash flow trends will be critical as the business develops.

4. Monitoring Points:

• Track subsequent annual accounts for revenue growth, profitability, and cash flow generation.
• Monitor timely filing of accounts and confirmation statements to ensure ongoing compliance.
• Watch for any changes in director/shareholder structure or PSC disclosures.
• Assess any emerging liabilities or borrowing to avoid overextension.
• Evaluate market conditions affecting online retail sales post-startup phase.