PARAGON AESTHETIC SERVICES LTD

Executive Summary

Paragon Aesthetic Services Ltd demonstrates a stable micro-entity balance sheet with positive working capital and shareholder funds. The company relies modestly on director advances for liquidity but has repaid these promptly. Credit approval is recommended conditionally, with ongoing monitoring of cash flow and compliance to mitigate risks inherent in a young, small-scale medical practice business.

PARAGON AESTHETIC SERVICES LTD - Analysis Report

Company Number: 13984679

Analysis Date: 2025-07-29 17:51 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Paragon Aesthetic Services Ltd is a recently incorporated micro-entity operating in the specialist medical practice sector. The company shows a positive net asset position and working capital, but limited scale and no audit increase risk. Directors appear to support the business financially, as evidenced by director advances repaid after year-end. Given the micro-entity size and early stage of trading, credit approval should be conditional on continued monitoring of cash flows and timely filing of accounts.

2. Financial Strength:
   The balance sheet as of 31 March 2024 shows total assets less current liabilities of £19,115, down slightly from £20,868 in 2023. Fixed assets are minimal at £1,731, consistent with a service-oriented business. Current assets of £17,298 exceed current liabilities (only £86), resulting in a strong net current asset position of £17,384, indicating short-term financial stability. Shareholders’ funds of £19,115 reflect a modest but positive equity base. No long-term liabilities or borrowings are reported.

3. Cash Flow Assessment:
   Current liabilities have decreased substantially from £4,370 in 2023 to just £86 in 2024, suggesting improved short-term liquidity management. The company’s current assets are largely held in cash or equivalents, supporting operational liquidity. Director advances totalling £5,366 at year-end, repaid post-year-end, imply reliance on director funding to smooth cash flow. Overall, working capital is positive, but the business should continue to build cash reserves from operations to reduce dependency on director loans.

4. Monitoring Points:

• Continued timely filing of annual accounts and confirmation statements to maintain regulatory compliance.
• Monitoring of cash flow trends, particularly the need for director advances or external financing.
• Profitability and revenue growth metrics once full profit and loss data become available.
• Any changes in director or PSC status, considering current directors hold significant control and provide financial support.
• Sector-specific risks in the medical practice area and impact of market conditions on client demand.