Company Number: SC725254

Analysis Date: 2025-07-29 18:26 UTC

1. Risk Rating: MEDIUM
   While SHAHIN GROUP LIMITED shows positive net assets and no current liabilities, the significant reduction in cash and current assets over the last year alongside limited operating profit suggests moderate solvency and liquidity risk. The company’s recent incorporation and niche industry also contribute to this rating.

2. Key Concerns:

• Sharp decline in current assets/cash from £77,176 (2023) to £1,482 (2024) with no current liabilities, indicating potential liquidity constraints or cash flow management issues.
• Limited operating scale and modest profit (£10,619) relative to fixed assets investment (£80,170) which may impact operational stability in a niche market (hairdressing and beauty).
• Single director and majority shareholder structure concentrates control and risk; reliance on a small leadership team may affect governance and strategic resilience.

3. Positive Indicators:

• Net assets have increased slightly to £81,652 demonstrating a stable equity base.
• No overdue filings and accounts are up to date indicating regulatory compliance and good governance in statutory matters.
• Profitability maintained with a positive operating profit and retained earnings of £81,552, showing some operational sustainability.

4. Due Diligence Notes:

• Investigate reason for drastic reduction in cash and current assets to understand cash flow dynamics and working capital management.
• Clarify nature and valuation basis of the significant tangible assets acquired (likely property investment) and their impact on future income streams.
• Review director’s background and business plan to assess capability to sustain and grow the business in a competitive sector.
• Confirm absence of contingent liabilities or off-balance sheet risks not disclosed in the accounts.