Company Number: 15022524

Analysis Date: 2025-07-29 13:14 UTC

1. Risk Rating: HIGH
   The company shows a concerning solvency position due to liabilities exceeding current assets, and its net asset base is very low (£1,443). Given it is newly incorporated with limited financial history, this heightens risk. The high current liabilities relative to current assets suggest short-term liquidity challenges.

2. Key Concerns:

• Negative working capital: Current liabilities (£11,450) exceed current assets (£2,268), indicating potential cash flow pressure to meet short-term obligations.
• Limited equity base: Shareholders’ funds are minimal, suggesting little buffer to absorb losses or finance growth.
• Early stage company with limited trading history: Incorporated July 2023 and filing first accounts; lack of historical performance data increases uncertainty around operational stability and profitability.

3. Positive Indicators:

• Compliance: All filings and accounts are up to date with no overdue returns or accounts, indicating sound regulatory compliance and governance to date.
• Clear ownership and control structure: 75-100% ownership by a single director may enable swift decision-making.
• Micro-entity status: Reduced reporting requirements may lower administrative burden and costs.

4. Due Diligence Notes:

• Investigate the nature and terms of current liabilities (£11,450) to understand repayment obligations and timing.
• Review cash flow projections and business plan to assess ability to generate positive operating cash flow and improve liquidity.
• Confirm if the company has secured funding or credit lines to support working capital needs.
• Assess market position and client base in the hairdressing sector to evaluate sustainability of the business model.
• Monitor director’s background and capacity to manage company growth given single control.