RAZOR FADE BARBER LTD

Executive Summary

Razor Fade Barber Ltd demonstrates a prolonged negative working capital position and deteriorating equity, signaling weak financial health and poor liquidity. The company’s current financial structure does not support credit extension without significant improvement or security. Close monitoring of liquidity and operational turnaround is essential before reconsidering credit facilities.

RAZOR FADE BARBER LTD - Analysis Report

Company Number: 13396578

Analysis Date: 2025-07-29 12:25 UTC

1. Credit Opinion: DECLINE
   Razor Fade Barber Ltd exhibits significant financial distress with persistent negative net current assets and shareholders’ funds, indicating liabilities exceed assets by a substantial margin (£11,600 deficit as of May 2024). The company’s inability to generate positive working capital over multiple years raises concerns about its capacity to meet short-term obligations and service any credit facility.

2. Financial Strength:
   The balance sheet shows a weak financial position. Current liabilities have ballooned to £11,862 against minimal current assets of £263, resulting in net current liabilities of £11,600. Shareholders’ funds are negative and worsening year-on-year, highlighting accumulated losses and no retained earnings buffer. Share capital is nominal (£1), offering no equity cushion. The company is classified as a micro-entity with only one employee, indicating limited operational scale and resource base.

3. Cash Flow Assessment:
   There is no direct cash flow statement provided, but the balance sheet suggests poor liquidity and insufficient working capital. The company’s current assets are almost entirely consumed by short-term liabilities, implying a strained cash conversion cycle and potential reliance on external funding or director loans to maintain operations. Negative net current assets indicate an inability to cover immediate liabilities from liquid resources.

4. Monitoring Points:

• Improvement in net current assets and shareholders’ funds to positive territory.
• Reduction of current liabilities and better alignment with current assets.
• Evidence of increased turnover or profitability to rebuild equity.
• Director’s support or injection of funds to stabilize liquidity.
• Future filing compliance and any changes in director appointments or credit references.