SONRIE AESTHETICS LTD

Executive Summary

Sonrie Aesthetics Ltd shows moderate solvency concerns primarily due to a large increase in current liabilities surpassing current assets, indicating liquidity strain. Despite this, the company’s positive net assets and up-to-date filings suggest operational continuity and regulatory compliance. Further financial detail is required to fully evaluate profitability and cash flow sustainability.

SONRIE AESTHETICS LTD - Analysis Report

Company Number: 13515482

Analysis Date: 2025-07-20 18:08 UTC

1. Risk Rating: MEDIUM
   The company exhibits moderate solvency risk due to significant current liabilities vastly exceeding current assets, leading to negative net current assets. However, positive net assets and shareholders' funds suggest some cushion. The micro-entity status limits disclosed financial detail, restricting full assessment.

2. Key Concerns:

• Liquidity Risk: Current liabilities (£437k) substantially outweigh current assets (£26k), resulting in a net current liability of £411k, indicating potential short-term cash flow difficulties.
• Growing Creditors: Creditors increased markedly from £135k (FY23) to £437k (FY24), raising concerns about creditor payment terms and operational cash management.
• Limited Financial Transparency: As a micro-entity, the company files abbreviated accounts without profit and loss or cash flow statements, limiting insight into operational profitability and cash generation capacity.

3. Positive Indicators:

• Increase in Fixed Assets: Fixed assets increased from £104k to £459k in the latest year, potentially reflecting investment in business infrastructure or equipment, which may support future revenue generation.
• Positive Net Assets and Shareholders’ Funds: Despite liquidity issues, the company maintains positive net assets (£47.8k), indicating that total assets exceed liabilities overall.
• On-time Filings and Compliance: The company is up to date with both accounts and confirmation statement filings, showing good regulatory compliance and governance practices to date.

4. Due Diligence Notes:

• Obtain management accounts or detailed financial statements to assess profitability, cash flow, and the nature of rising liabilities.
• Investigate the composition and maturity profile of current liabilities to determine if they are trade creditors, loans, or accruals, and assess repayment risk.
• Review the nature of fixed assets acquired to understand the capital investment strategy and its alignment with business operations.
• Confirm if there are any contingent liabilities, related party transactions, or off-balance-sheet obligations not disclosed in abbreviated accounts.
• Assess the backgrounds and roles of the directors/shareholders given their significant control to understand governance quality and operational expertise.