MAGIC SCISSORS BARBER LTD

Executive Summary

MAGIC SCISSORS BARBER LTD is a newly formed micro-entity operating in hairdressing with modest financial resources and slightly negative working capital. While the company meets regulatory filing obligations and has straightforward ownership, the limited financial history and tight liquidity warrant close monitoring of cash flow and operational viability going forward.

MAGIC SCISSORS BARBER LTD - Analysis Report

Company Number: 14934993

Analysis Date: 2025-07-29 17:00 UTC

1. Risk Rating: MEDIUM
   The company shows modest net assets (£1,709) and net current liabilities (£3,827), indicating a tight liquidity position. As a recently incorporated micro-entity with limited financial history, it carries inherent uncertainty but no immediate signs of distress or insolvency.

2. Key Concerns:

• Negative net current assets suggest potential short-term liquidity pressure to meet obligations on time.
• Very limited fixed assets and modest total net assets imply limited collateral or financial buffer.
• The company is newly incorporated (June 2023) with only one year of financial data, restricting visibility on operational stability and track record.

3. Positive Indicators:

• The company is current with all filing requirements (accounts and confirmation statements), evidencing regulatory compliance.
• Sole director and 75-100% shareholder control by Mr. Karmand Azizi suggests clear governance and decision-making.
• Reporting as a micro-entity reduces administrative burden, appropriate for business scale and size.

4. Due Diligence Notes:

• Investigate cash flow management and working capital cycle given negative net current assets.
• Review business plan, client base, and revenue projections to assess sustainability beyond the first year.
• Confirm no contingent liabilities or off-balance-sheet obligations that could exacerbate liquidity risk.