RUSTY SCISSORS BARBER LTD

Executive Summary

Rusty Scissors Barber Ltd demonstrates a small but stable financial position with positive net current assets and improving shareholders’ funds. The company’s ability to meet short-term liabilities is adequate, supported by minimal overhead and prudent management by the sole director-owner. Credit approval is recommended with conditions to monitor liquidity and financial reporting compliance.

RUSTY SCISSORS BARBER LTD - Analysis Report

Company Number: 13263576

Analysis Date: 2025-07-20 12:40 UTC

1. Credit Opinion: APPROVE (Low risk with conditions) Rusty Scissors Barber Ltd is a micro-entity operating in the hairdressing sector with a stable and improving balance sheet and no overdue filings. The company shows positive net current assets and shareholders’ funds that have grown modestly year-on-year, indicating sound financial stewardship by the sole director who also holds 75-100% ownership. Given the small scale and limited financial data, approval is granted with the condition that the company maintains current asset coverage over liabilities and timely filings.

2. Financial Strength: The company’s financial position is modest but improving. Net current assets have increased from £129 in 2021 to £232 in 2024, showing incremental strengthening of working capital. Shareholders’ funds mirror this growth, rising from £129 to £232, with no long-term liabilities reported. The balance sheet is simple, reflecting a micro-entity status, but the incremental growth in net assets and current assets relative to liabilities indicates prudent financial management and no immediate solvency concerns.

3. Cash Flow Assessment: Current assets of £7,636 against current liabilities of £7,404 provide a narrow but positive working capital buffer (£232). The company’s ability to meet short-term obligations appears adequate, but the margin is slim, which is typical for a micro business in this sector. Cash flow depends heavily on operational income, and with an average of one employee, overheads are minimal. Monitoring cash conversion cycles and maintaining liquidity will be critical to avoid short-term cash flow stress.

4. Monitoring Points:

• Maintain or improve net current asset levels to ensure liquidity.
• Monitor timely submission of accounts and confirmation statements.
• Track any changes in director or ownership structure that might affect governance.
• Assess impact of market conditions on trading performance, given the business size.
• Review operational cash flows on a regular basis to avoid liquidity constraints.