SIGNATURE STUDIOS AESTHETICS LTD

Executive Summary

Signature Studios Aesthetics Ltd demonstrates signs of financial distress with negative working capital and a near depletion of shareholders' funds, raising concerns about its ability to meet short-term obligations. While regulatory filings are up to date and asset investments continue, the company’s reliance on director loans and cash flow volatility warrant close scrutiny. Further investigation into debtor quality and operational cash flow is recommended to assess business viability.

SIGNATURE STUDIOS AESTHETICS LTD - Analysis Report

Company Number: 13599271

Analysis Date: 2025-07-29 14:04 UTC

1. Risk Rating: HIGH
   The company exhibits negative net current assets and a significant decline in shareholder funds over recent years, indicating potential solvency and liquidity challenges.

2. Key Concerns:

• Negative Net Current Assets: The latest balance sheet shows net current liabilities of £3,836, worsening from prior years, signifying potential short-term liquidity issues to meet obligations as they fall due.
• Declining Shareholders Funds: Shareholders’ funds have fallen sharply from £3,246 in 2022 to just £7 in 2024, indicating erosion of equity and financial distress.
• Director Loan Fluctuations: The director’s loan account moved from a negative balance (company owed director) to a positive balance (£7,764 owed by director to company), with large advances and repayments, suggesting reliance on director funding and possible cash flow volatility.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statements are filed timely, demonstrating regulatory compliance to date.
• Tangible Fixed Assets Growth: The company invested £3,500 in tangible fixed assets during the year, increasing net book value to £4,745, indicating ongoing investment in operational capacity.
• Established Accounting Policies: Financial statements prepared under FRS 102 with clear accounting policies, and exemption from audit consistent with small company status.

4. Due Diligence Notes:

• Investigate nature and collectability of debtors (£10,584), as this is a significant portion of current assets but may be aged or at risk.
• Review director loan account details and repayment terms to understand cash flow impacts and potential related party risks.
• Assess provisions for liabilities (£902) and other creditors to determine any contingent liabilities or pending obligations that could further strain finances.
• Confirm ongoing trading performance, revenue trends, and cash flow generation to evaluate operational sustainability beyond the balance sheet snapshot.
• Evaluate any off-balance sheet commitments or related party transactions not disclosed in summary data.