Company Number: 12929785

Analysis Date: 2025-07-20 16:25 UTC

1. Risk Rating: HIGH
   The company shows a significant deterioration in net current assets and net assets from a positive £2,054 in 2023 to a negative £118 in 2024, indicating potential solvency issues. This decline within a single year raises concerns about the company's ability to meet its short-term obligations.

2. Key Concerns:

• Negative Net Assets in Latest Year: The company moved from positive net assets to a negative position, which is a critical red flag for solvency risk.
• Declining Current Assets: Current assets decreased by approximately 28% (£5,362 to £3,839), while current liabilities increased, shrinking working capital and liquidity.
• Small Scale and Limited Capital: As a micro-entity with only £100 share capital and a single director-owner, the business may have limited financial resilience and operational scale to absorb shocks.

3. Positive Indicators:

• Timely Filings and Compliance: Accounts and confirmation statement filings are up to date with no overdue notices, indicating good regulatory compliance.
• Steady Workforce Growth: The average number of employees increased from 2 to 3 in the latest year, suggesting some operational activity and possibly business growth.
• Owner Involvement: The sole director and 100% owner, Mrs. Sonia Sajid, appears actively engaged, which may benefit business continuity and decision making.

4. Due Diligence Notes:

• Investigate reasons for the sharp decline in net assets and working capital in 2024—whether caused by operational losses, increased liabilities, or asset write-downs.
• Review cash flow statements and profit & loss accounts (not provided here) to assess ongoing operational sustainability and profitability trends.
• Confirm that no contingent liabilities or off-balance-sheet debts exist that could worsen financial stability.
• Assess the business model and market position in the hairdressing and beauty treatment sector to understand growth prospects and competitive risks.
• Verify whether the director has injected additional funds or intends to support the company if liquidity issues persist.