Company Number: 12805205

Analysis Date: 2025-07-20 11:02 UTC

1. Risk Rating: LOW

Justification: The company displays solid net asset growth over recent years, positive net current assets (working capital), and no overdue filings. Its micro-entity status indicates a small scale operation with modest financial complexity. The absence of liquidation or administration status and compliance with statutory filing deadlines support a low risk profile.

2. Key Concerns:

• Low Share Capital: The company’s share capital is minimal (£100), which may limit its ability to absorb unexpected losses or finance expansion without external funding.
• Director Change and Control Concentration: The recent director change and the fact that a single individual holds significant control (75-100% shares and voting rights) could present governance and succession risks.
• Limited Financial Information: As a micro-entity, detailed financial performance data (e.g., profitability, cash flows) is not disclosed, limiting the depth of financial analysis.

3. Positive Indicators:

• Increasing Net Assets: Net assets grew from £1,027 in 2020 to £4,607 in 2023, indicating asset accumulation and potential profitability.
• Strong Liquidity Position: Net current assets increased from £1,222 in 2020 to £3,168 in 2023, showing improved short-term liquidity and ability to meet current obligations.
• Compliance with Filings: All statutory accounts and confirmation statements are filed on time with no overdue notices, reflecting good regulatory compliance.
• Stable Workforce: The company maintained a consistent average of two employees over recent years, suggesting operational stability in its niche hairdressing sector.

4. Due Diligence Notes:

• Examine underlying profitability and cash flow trends beyond balance sheet snapshots to assess ongoing operational viability.
• Review director and shareholder changes closely to understand implications for governance and control.
• Investigate the nature and quality of fixed assets (£1,439 in 2023) to determine their contribution to business operations.
• Confirm if there are any contingent liabilities or off-balance sheet risks not apparent in micro-entity filings.
• Verify if the company has sufficient working capital buffers for potential sector volatility in hairdressing services.