ROJAVA BARBER LTD

Executive Summary

ROJAVA BARBER LTD is a very recently incorporated micro-entity operating in hairdressing with minimal equity and current liabilities exceeding current assets, indicating high solvency and liquidity risk. While regulatory compliance is satisfactory, the lack of operating history and small financial base warrant careful scrutiny of its business plan and liabilities. Further due diligence is recommended to assess cash flow sustainability and operational viability.

ROJAVA BARBER LTD - Analysis Report

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.