Company Number: 13337227

Analysis Date: 2025-07-20 11:53 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Ombré Beauty Studios Limited is a recently established micro-entity operating in the hairdressing and beauty treatment sector. The company exhibits a small scale with limited financial resources and a single employee. While the company is active and compliant with filing deadlines, its financial position has weakened over the last two years, evidenced by a decline in net assets from £12,275 in 2022 to £2,173 in 2024. The reduction signals a contraction in working capital and equity, elevating credit risk. The single director and sole controlling shareholder, Charlotte Ridges, shows committed management; however, limited scale and modest net assets warrant caution. Approval for credit facilities may be considered with conditions such as modest borrowing limits, short repayment terms, and regular financial monitoring.

2. Financial Strength:
   The balance sheet reveals current assets of £11,563 against current liabilities of £7,440 as of April 2024, resulting in net current assets (working capital) of £4,123. This is a significant decrease from £12,275 net current assets in 2022, indicating tightening liquidity and reduced cushion against short-term obligations. Total net assets declined from £12,275 to £2,173, reflecting accumulated losses or withdrawals. There are no fixed assets reported, and the company relies entirely on current assets, likely cash and receivables. The accrued and deferred income of £1,950 in 2024, absent in the prior year, may represent deferred revenues or expenses, further impacting net assets. The micro-entity reporting regime limits detailed disclosures but the trend points to diminishing financial strength.

3. Cash Flow Assessment:
   With only one employee and a micro business scale, cash flow is likely limited and highly sensitive to operational fluctuations. The decline in working capital suggests tighter liquidity management is needed. No explicit cash flow statements are provided; however, the reduction in current assets and net assets implies cash outflows exceeding inflows over the period. The company appears to have manageable current liabilities relative to current assets, but the low absolute values mean any unforeseen expense or revenue delay could strain liquidity. The absence of external auditors and reliance on micro-entity accounts reduce transparency around cash flow quality.

4. Monitoring Points:

• Quarterly review of cash flow forecasts and working capital position to detect liquidity stress early.
• Monitor any increase in current liabilities or accruals that may further reduce net assets.
• Watch for changes in ownership or management that could affect financial stewardship.
• Track revenue trends and profitability to assess if the company can restore and grow its equity base.
• Ensure timely filing of accounts and confirmation statements to maintain compliance.
• Evaluate the impact of deferred income and any off-balance sheet commitments.