Company Number: 14078280

Analysis Date: 2025-07-29 16:38 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits weak liquidity and very low net asset value, with net current liabilities significantly negative in the latest year. The company is micro-sized with very limited financial resources and a declining asset base, posing substantial solvency and operational risks.

2. Key Concerns:

• Liquidity risk: Current liabilities (£2,790) exceed current assets (£1,352) by a significant margin, indicating a negative working capital position as of 2024. This suggests difficulty in meeting short-term obligations.
• Minimal net assets: Net assets are very low (£268 in 2024, up only slightly from £127 in 2023), reflecting a very thin equity buffer and limited financial resilience.
• Shrinking asset base and employee reduction: Fixed assets and current assets have decreased year-on-year, coupled with a reduction in average employees from 3 to 1, which may indicate operational contraction or financial distress.

3. Positive Indicators:

• Compliance and timeliness: The company is current with all filings (accounts and confirmation statements), with no overdue submissions or penalties noted.
• Active status with a sole director controlling 75-100% equity and voting rights, ensuring clear accountability and control.
• The business operates in a stable service sector (hairdressing and beauty treatment) which can have consistent demand if managed well.

4. Due Diligence Notes:

• Investigate cash flow statements and profitability metrics not disclosed here to assess operational sustainability and ability to service liabilities.
• Clarify reasons behind the reduction in current assets and fixed assets, and whether assets are being sold to cover costs or if there is a decline in business activity.
• Understand the trading history since incorporation in 2022, including revenue trends and any external financing or shareholder support.
• Review director’s plans for addressing liquidity concerns and business growth prospects.
• Verify relationship and credibility of the accountant firm and their involvement in financial management or advisory.