MICROBLADING SOUTHEND LIMITED

Executive Summary

Microblading Southend Limited has shown strong financial improvement within its first two years, turning from a net current liability position to solid positive working capital and increased net assets. The company demonstrates good liquidity and compliance, supporting a positive credit stance for micro-business lending. Continued monitoring of liquidity trends and operational performance is advised to maintain credit quality.

MICROBLADING SOUTHEND LIMITED - Analysis Report

Company Number: 14294123

Analysis Date: 2025-07-20 12:40 UTC

1. Credit Opinion: APPROVE
   Microblading Southend Limited demonstrates a solid improvement in its financial position over the latest year despite being a relatively new entity incorporated in 2022. The company has strengthened its net asset base substantially, reversing prior working capital deficits to a strong positive position. With no overdue filings and an active website presence, the business appears well-managed and compliant. The micro-entity status limits detailed financial disclosures but current data supports the ability to meet short-term obligations and sustain operations. Lending should be considered with standard micro-business risk mitigants.

2. Financial Strength:
   The balance sheet shows a marked improvement from the prior year. Fixed assets decreased significantly (£31,303 to £276), perhaps reflecting asset disposals or reclassification, but current assets have quadrupled to £45,642, driven likely by cash or receivables growth. Current liabilities have halved to £14,454, resulting in positive net current assets of £31,188 versus a prior deficit of £14,473. Total net assets stand at £31,464, nearly doubling from £16,830. The company’s equity base is modest but growing, indicating improving financial stability.

3. Cash Flow Assessment:
   Although detailed cash flow statements are not available, the strong increase in current assets and reduction in current liabilities signals improved liquidity and working capital management. The positive net current assets position suggests the company can cover its short-term liabilities comfortably. The absence of employees (average zero) implies low fixed overheads, which reduces cash burn risk. However, as a micro-entity, the business’s cash flow may still be sensitive to client payment timing and market demand.

4. Monitoring Points:

• Track future filings to ensure continued compliance and timely submission of accounts and confirmation statements.
• Monitor the sustainability of current asset growth and the nature of these assets (cash vs. receivables).
• Watch for any sharp fluctuations in liabilities or fixed assets that may signal operational changes or risks.
• Assess ongoing profitability and cash generation as more financial data becomes available in subsequent years.
• Review management’s strategic plans and market positioning in the hairdressing and beauty treatment sector.