Company Number: 15205579

Analysis Date: 2025-07-29 17:52 UTC

1. Risk Rating: HIGH
   Justification: The company shows negative net current assets and net assets (£-4,116), indicating it is technically insolvent at the balance sheet date. The current liabilities (£5,000) exceed current assets (£884), highlighting liquidity risk. This financial position is concerning for a newly incorporated micro-entity in a service industry.

2. Key Concerns:

• Negative net current assets and net liabilities suggest inability to cover short-term obligations.
• Frequent changes in directors within the first year may indicate governance instability or internal issues.
• Control and ownership appear concentrated among multiple directors with overlapping PSC declarations, raising potential concerns around clarity of control and decision-making.

3. Positive Indicators:

• The company is active and filings (accounts, confirmation statement) are up to date with no overdue submissions, indicating compliance with regulatory requirements.
• Employing 4 staff in the first year suggests some operational activity and potential revenue generation.
• The company benefits from micro-entity filing exemptions, reducing administrative burdens.

4. Due Diligence Notes:

• Investigate the nature and timing of the current liabilities totalling £5,000 to understand creditor composition and payment terms.
• Review cash flow projections or management accounts to assess if liquidity has improved since year-end.
• Clarify the reasons for director turnover and how the PSC control shifted among directors in a short timeframe.
• Confirm the business model viability in hairdressing and beauty services given the initial financial position and market conditions.