MEDICOSMETIC SKIN CLINIC LIMITED

Executive Summary

Medicosmetic Skin Clinic Limited demonstrates a stable financial position with improving liquidity and solvency metrics over three years, supported by consistent regulatory compliance. The company’s small scale and single-director ownership concentration warrant further examination, especially of director advances and underlying profitability. Overall, the risk profile is low based on available data but merits additional due diligence on operational sustainability and governance.

MEDICOSMETIC SKIN CLINIC LIMITED - Analysis Report

Company Number: 13760019

Analysis Date: 2025-07-29 19:03 UTC

1. Risk Rating: LOW
   The company exhibits solid solvency and liquidity positions with positive net current assets and growing shareholder funds over three years. It maintains compliance with filing deadlines and shows no signs of regulatory or operational distress.

2. Key Concerns:

• Reliance on a single director and shareholder (Mrs. Jane Parry) may present governance concentration risk.
• Limited scale of operations as indicated by the micro/small company exemption and very modest asset base.
• Director's advances to the company increased notably in the latest year (£6,032), which could indicate reliance on director funding for working capital.

3. Positive Indicators:

• Consistent growth in net current assets from £23,585 (2021) to £47,511 (2023), demonstrating improving liquidity.
• Healthy cash balance (£60,016 in 2023) relative to current liabilities (£20,274), indicating good short-term financial flexibility.
• No overdue accounts or confirmation statements, evidencing good regulatory compliance.
• Positive retained earnings growth and shareholder funds increase from £28,345 to £52,998 over three years, reflecting profitable or capital-supportive operations.
• Business operates in a niche service sector (hairdressing and beauty treatment) with apparent stable asset investment in fixtures and fittings.

4. Due Diligence Notes:

• Obtain and review the income statement and cash flow statements (not filed with Companies House) to confirm profitability trends and cash generation sustainability.
• Evaluate the director's advances in detail to understand the nature, terms, and repayment plans to assess any hidden liquidity risks.
• Confirm absence of any director disqualifications, litigation, or regulatory investigations given the single-director structure.
• Assess customer concentration and market positioning due to the small scale of operations.
• Verify internal controls and governance mechanisms given the high ownership concentration.