MY ADDRESS BARBER LTD

Executive Summary

MY ADDRESS BARBER LTD is financially stable with growing net assets and strong working capital, typical of a well-managed micro-entity. While cash assets have decreased, the company maintains sufficient liquidity and no signs of distress. To enhance future resilience, management should focus on cash flow monitoring, potential asset investment, and revenue diversification.

MY ADDRESS BARBER LTD - Analysis Report

Company Number: 13129240

Analysis Date: 2025-07-20 14:09 UTC

Financial Health Assessment Report for MY ADDRESS BARBER LTD

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1. Financial Health Score: B

Explanation:
MY ADDRESS BARBER LTD demonstrates a stable and improving financial position typical of a healthy micro-entity business. The company maintains positive net assets and shows growth in shareholder funds, indicating a solid equity base. While there are no fixed assets currently, the company holds sufficient current assets and working capital to cover liabilities comfortably. The absence of audit requirements and the micro-entity reporting framework limits detailed profitability insights, but the balance sheet signals overall financial wellness. The "B" grade reflects good financial health with some room for strengthening asset base and cash flow monitoring.

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2. Key Vital Signs

• Net Assets: £5,588 (2024) up from £4,118 (2023)
  Interpretation: Growing net assets indicate that the company is accumulating equity and is solvent. This is a positive sign of financial strength.

• Current Assets: £3,863 (2024), decreased from £7,682 (2023)
  Interpretation: A reduction in current assets, primarily cash or receivables, could hint at tightened liquidity but still sufficient to cover liabilities.

• Current Liabilities: £1,725 (2024), reduced significantly from £3,851 (2023)
  Interpretation: Lower short-term liabilities improve the company's liquidity position and reduce financial stress.

• Net Current Assets (Working Capital): £5,588 (2024) vs. £3,831 (2023)
  Interpretation: Healthy and increasing working capital implies the company can meet its short-term obligations comfortably – akin to a “healthy pulse” in cash flow terms.

• Fixed Assets: £0 (2024) down from £287 (2023)
  Interpretation: The company has no long-term assets currently, which may limit operational capacity but reduces depreciation and fixed costs.

• Share Capital: £100 (constant)
  Interpretation: Standard for a micro company, indicating modest initial investment.

• Employee Count: 1 (consistent)
  Interpretation: A very small workforce typical for a micro business, limiting overhead costs but potentially constraining growth.

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3. Diagnosis: Financial Condition

MY ADDRESS BARBER LTD presents as a financially stable micro-entity with positive equity growth and strong working capital. The company’s balance sheet reflects no immediate symptoms of financial distress such as negative net assets, excessive liabilities, or liquidity shortages. The reduction in current assets alongside liabilities suggests careful management of cash and payables, avoiding overextension.

The absence of fixed assets implies the business operates with minimal capital investment, relying more on service provision and possibly low-cost equipment. This can be healthy for a barber shop if operational efficiency is maintained but may limit scalability.

The consistent single-employee model aligns with a small, owner-managed enterprise, which is typical in the hairdressing and beauty sector under SIC 96020. The company appears solvent with no overdue filings or regulatory concerns, indicating good compliance health.

Overall, the company’s financial vital signs are steady with no alarming symptoms, signifying a robust micro-business foundation.

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4. Recommendations: Financial Wellness Improvement

• Enhance Cash Reserves: The drop in current assets suggests monitoring cash flow closely. Building a buffer of liquid assets will provide resilience against unexpected expenses or seasonal revenue fluctuations.

• Consider Fixed Asset Investment: Evaluate whether acquiring or upgrading equipment (fixed assets) could improve service quality or operational efficiency, potentially driving revenue growth.

• Profit & Loss Transparency: Although exempt from audit, voluntarily preparing a detailed profit and loss account can help identify profit drivers and cost pressures, enabling better strategic decisions.

• Diversify Revenue Streams: Explore complementary services or marketing initiatives to increase customer base and income, which will strengthen financial robustness.

• Regular Financial Review: Establish periodic financial health check-ups to catch early warning signs and adjust business plans proactively.

• Leverage Digital Presence: The active website and contact points are assets; ensure these are optimized for customer engagement and bookings to support steady cash flow.

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