Company Number: 15537905

Analysis Date: 2025-07-20 18:26 UTC

1. Risk Rating: LOW

Justification: RIO-HAIR LTD is a recently incorporated micro-entity company with modest but positive net current assets and no overdue filings. The financial position at the first year-end shows a small positive working capital, and the company is compliant with statutory filing requirements. The sole director and 100% owner appears to have clear control, which can facilitate decision-making in the early stages.

2. Key Concerns:

• Limited Financial History: Being incorporated in March 2024 and reporting first accounts in March 2025, the company has a very short operational and financial history, which limits the ability to assess long-term operational stability or creditworthiness.
• Small Asset Base: Current assets of £4,859 and net assets of £1,784 indicate a small capital base, typical for a micro-entity but potentially vulnerable to cash flow shocks or unexpected liabilities.
• Concentrated Control: Mr. Ian Rush holds 75-100% ownership and full voting rights, which concentrates control and may pose governance risks if succession or decision-making challenges arise.

3. Positive Indicators:

• Compliance: The company has filed accounts and confirmation statements on time, indicating good regulatory compliance.
• Positive Working Capital: Net current assets of £1,784 suggest the company can meet short-term liabilities at the reporting date.
• Clear Ownership and Management: Single director and controlling shareholder simplifies governance and accountability.

4. Due Diligence Notes:

• Review Subsequent Period Financials and Trading Performance: Given the limited financial history, assess trading progress, revenue generation, and cash flow beyond March 2025.
• Investigate Cash Flow Management and Funding Sources: Determine how the company finances operations and manages liquidity given the small asset base.
• Confirm Director’s Background and Related Party Transactions: Evaluate the director’s experience and any transactions with related parties that may affect financial stability or governance.