Company Number: 15211552

Analysis Date: 2025-07-29 18:02 UTC

1. Risk Rating: HIGH
   Justification: The company shows negative net current assets and negative net assets (£-1,335) as of 31 October 2024, indicating liabilities exceed assets. This suggests solvency concerns for this micro-entity only incorporated in late 2023. The small scale and recent formation limit financial data but the negative equity is a clear red flag.

2. Key Concerns:

• Negative net assets and net current assets imply that the company may not be able to fully meet its short-term liabilities.
• Very limited financial history and scale (micro-entity with only 1 employee) restrict ability to assess operational stability.
• Recent director changes and significant ownership/control concentrated in two individuals with large shareholdings could pose governance risks.

3. Positive Indicators:

• Company is active and compliant with filing deadlines for both accounts and confirmation statements, indicating regulatory compliance and governance discipline.
• The business operates in a defined niche (hairdressing and beauty treatment) with an active website and social media presence, showing market engagement.
• Shareholders’ funds, while negative, are small in absolute value which may be manageable at this early stage.

4. Due Diligence Notes:

• Investigate the causes of negative equity—whether initial start-up costs, early losses, or accounting classification issues.
• Review cash flow statements and bank balances (if available) to understand liquidity beyond balance sheet snapshot.
• Assess business model viability and revenue generation plans given limited financial history and small scale.
• Review background and track record of directors for any prior insolvency or disqualification records.
• Confirm the relationship and influence between the two main PSCs given significant overlapping control.