SAMS BARBER SHOP WEMBLEY LIMITED

Executive Summary

SAMS BARBER SHOP WEMBLEY LIMITED demonstrates operational continuity with current regulatory compliance and positive working capital. However, a notable decline in net assets and substantial long-term liabilities warrant caution regarding its financial stability. Further analysis of debt structure and profitability is recommended to better understand solvency and liquidity risks.

SAMS BARBER SHOP WEMBLEY LIMITED - Analysis Report

Company Number: 14014675

Analysis Date: 2025-07-29 15:06 UTC

1. Risk Rating: MEDIUM
   The company's financial data indicates a decline in net assets over the latest year and the presence of long-term creditors exceeding current assets. However, the business remains solvent with positive net current assets and no overdue filings, suggesting moderate operational continuity risk.

2. Key Concerns:

• Declining net assets from £10,675 in 2023 to £5,643 in 2024, indicating erosion of equity which may reflect operational losses or increased liabilities.
• Long-term liabilities (creditors falling due after more than one year) remain significant at £10,667, close to the value of total assets less current liabilities, potentially stressing solvency if cash flow tightens.
• Small scale of operations (micro-entity status, only 5 employees) and limited fixed assets base may constrain scalability and resilience to market fluctuations.

3. Positive Indicators:

• The company is active and filing both accounts and confirmation statements on time, evidencing regulatory compliance and governance discipline.
• Positive net current assets (£2,226) suggest the company can meet short-term obligations currently.
• The business operates in a specialized service sector (hairdressing), which typically benefits from steady local demand.

4. Due Diligence Notes:

• Clarify the nature and terms of the long-term creditors to assess refinancing or repayment risks and potential impact on cash flows.
• Review detailed profit and loss statements to understand causes of net asset decline and operational profitability trends.
• Investigate the working capital management given the decrease in net current assets compared to prior year.
• Confirm the stability and background of directors and persons with significant control to evaluate governance and management risk.