TEASE HAIR UK LTD

Executive Summary

TEASE HAIR UK LTD exhibits persistent negative net assets and net current liabilities, signaling a high solvency risk and potential liquidity challenges. Although regulatory compliance is up to date and the company maintains a stable small workforce, its financial position raises concerns about operational sustainability. Further investigation into asset liquidity, cash flows, and liability structure is recommended to fully assess risk exposure.

TEASE HAIR UK LTD - Analysis Report

Company Number: 12766424

Analysis Date: 2025-07-19 11:51 UTC

1. Risk Rating: HIGH
   Justification: The company demonstrates persistent net current liabilities and negative net assets over multiple financial years, indicating solvency challenges. The micro-entity accounts show total net liabilities of £2,471 as of 30 September 2024, worsening slightly from prior years. This suggests the company is not in a strong financial position to meet its obligations.

2. Key Concerns:

• Solvency Risk: The consistent negative net current assets and net liabilities indicate the company may struggle to meet short-term debts, raising concerns about its financial viability.
• Liquidity Concerns: Current liabilities consistently exceed current assets, implying potential cash flow difficulties despite a stable current asset figure (£20,100) likely tied up in non-cash components.
• Operational Stability: The company operates in a niche sector (SIC 96090 - other service activities not elsewhere classified) with only two employees, and limited financial scale, which may constrain growth and resilience.

3. Positive Indicators:

• Compliance: No overdue filings are noted for accounts or confirmation statements, indicating good regulatory compliance and corporate governance.
• Stable Staffing: The company maintains a small, consistent workforce, which may support controlled operating expenses.
• Ownership and Management: Presence of multiple directors and a corporate director could provide diversified oversight.

4. Due Diligence Notes:

• Investigate the composition of current assets to determine liquidity quality—are these cash equivalents or receivables/inventories that may not be readily convertible?
• Review cash flow statements or management accounts if available to assess ongoing operational cash flow and working capital management.
• Clarify the nature of liabilities due within one year to evaluate potential refinancing or settlement risks.
• Understand the business model and revenue generation capability given the negative net assets despite stable current asset figures.
• Examine related party transactions, particularly given multiple directors with shared addresses, to assess any governance or conflict of interest issues.