PHOENIX BEAUTY MAIDSTONE LTD

Executive Summary

Phoenix Beauty Maidstone Ltd is an early-stage, micro-sized beauty treatment business with a very limited asset base and negative working capital. The company's financial position is fragile, lacking evidence of profitability or cash flow strength to support credit facilities at this time. Monitoring future financial filings and liquidity improvements will be critical before reconsidering credit exposure.

PHOENIX BEAUTY MAIDSTONE LTD - Analysis Report

Company Number: 14846970

Analysis Date: 2025-07-29 15:33 UTC

1. Credit Opinion: DECLINE. Phoenix Beauty Maidstone Ltd is a newly incorporated micro-entity (less than 2 years old) operating in the hairdressing and beauty treatment sector. The financial data shows minimal fixed and current assets with current liabilities slightly exceeding current assets, resulting in a negative working capital position (-£26). The net assets and shareholders' funds stand at a very low £499. Given the very limited operating history, small asset base, and absence of profitability data, the company currently lacks the financial strength and cash flow stability to support credit facilities with reasonable confidence. The risk of payment default is elevated in absence of further trading and cash flow evidence.

2. Financial Strength: The balance sheet is very thin with fixed assets at £524 and current assets at £2,997 offset by current liabilities of £3,023. This results in net current liabilities of £26 and net assets of only £499. The company's equity base is minimal and there is no indication of retained earnings or profit reserves. As a micro-entity, the company has limited disclosure, but the current snapshot suggests fragile financial health. The company’s capital structure relies entirely on initial share capital with no debt or long-term liabilities reported.

3. Cash Flow Assessment: The negative net current assets position indicates that current liabilities slightly exceed short-term assets, suggesting limited liquidity. There is no detailed cash flow statement or profit and loss data filed, so assessment is constrained. However, the minimal asset base and negative working capital imply that the company may struggle to meet short-term obligations without additional capital or cash inflows. The small scale of operations (average 2 employees) and early stage of trading further heighten uncertainty around consistent cash generation.

4. Monitoring Points:

• Timely filing of future annual accounts to assess profit generation and cash flow trends.
• Evolution of working capital and net current assets to ensure improved liquidity.
• Any increase in share capital or external funding to strengthen equity.
• Business growth indicators such as increased turnover and customer base.
• Directors’ ongoing engagement and financial stewardship to maintain compliance and operational stability.