SKINFLUENCE LIMITED

Executive Summary

Skinfluence Limited is a young, small private company with modest net assets and positive but limited working capital. The business relies significantly on director funding, indicating early-stage operational cash flow limitations. Conditional credit approval is recommended, contingent on ongoing financial monitoring and evidence of improving cash generation and reduced reliance on related party financing.

SKINFLUENCE LIMITED - Analysis Report

Company Number: 13199300

Analysis Date: 2025-07-19 12:55 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Skinfluence Limited is a recently incorporated private limited company with modest financials reflecting its early stage. The company shows positive net current assets and shareholders funds, indicating a basic level of financial stability. However, the company has limited fixed assets and depends heavily on director funding (noted loans and dividends involving the director), which suggests limited operational cash flow generation. Given the absence of historical profitability data beyond the first 14-month period and reliance on director advances, credit approval should be conditional upon ongoing monitoring and receipt of up-to-date financials to confirm improving cash flow and reduced related-party reliance.

2. Financial Strength:
   At the 31 March 2022 year-end, the company reported total net assets of £5,425, with no fixed assets and current assets primarily composed of cash (£50,084) and debtors (£2,618). Current liabilities stood at £47,277, resulting in net current assets of £5,425, a positive working capital position. Share capital is nominal at £100. The balance sheet suggests a lean operation with no tangible asset base, relying on cash and short-term receivables. The presence of related party loans from the director (£33,061 owed by the company to the director) and dividend payments (£42,000 declared) indicate that the company is dependent on director financial support, which may constrain long-term financial resilience.

3. Cash Flow Assessment:
   Cash holdings of £50,084 at year-end provide some liquidity cushion, but the relatively high current liabilities of £47,277 reduce net liquidity. The company's working capital is positive but marginal. The director has advanced funds to support operations, which were partially repaid during the period, reflecting some cash flow movement but also dependency on external (director) finance. Without detailed profit and loss data, it is difficult to assess operational cash generation. The absence of employees and fixed assets suggests the business model may be service or retail-oriented with low capital expenditure, but close scrutiny of ongoing cash inflows and outflows is warranted.

4. Monitoring Points:

• Updated financial statements (profit and loss, cash flow) for the latest period to assess operational performance and cash flow trends.
• Level and terms of director loans and intercompany balances to ensure these do not impair liquidity or financial independence.
• Trends in current liabilities versus current assets to monitor working capital stability.
• Evidence of growing sales or diversification of funding sources beyond director advances.
• Confirmation of continued compliance with filing and statutory requirements.