T21 HAIR LTD

Executive Summary

T21 Hair Ltd exhibits a low risk profile with improving financial strength, positive net assets, and timely regulatory compliance. The company maintains strong liquidity and profitability indicators despite its small scale and reliance on director financing. Further inquiry into the director’s loan account and detailed cash flow analysis is recommended to ensure ongoing operational stability.

T21 HAIR LTD - Analysis Report

Company Number: 13923161

Analysis Date: 2025-07-29 17:38 UTC

1. Risk Rating: LOW
   T21 Hair Ltd demonstrates a stable and improving financial position with positive net assets and net current assets, no overdue filings, and compliance with statutory obligations. The company is small, with modest assets and liabilities, but there are no immediate solvency or liquidity red flags.

2. Key Concerns:

• Increasing Corporation Tax Liability: Corporation tax creditors have grown from £6,409 in 2024 to £7,234 in 2025, which could pressure cash flow if profits are not converted to cash efficiently.
• Director’s Loan Account Growth: The director’s loan account has approximately doubled from £1,917 to £3,732, indicating reliance on director financing which may pose risk if not repaid.
• Limited Scale and Single Employee: The company operates with a single director-employee, which may limit operational resilience and scalability.

3. Positive Indicators:

• Strong Liquidity Position: Cash balances increased from £10,991 to £17,182, supporting good short-term payment capacity.
• Consistent Profit Retention: The profit and loss reserve grew from £1,900 to £6,337, indicating retained earnings accumulation and operational profitability.
• Compliance and Filing: All accounts and confirmation statements are filed on time with no overdue penalties, reflecting good regulatory compliance.
• Positive Net Assets: Net assets increased significantly from £2,000 to £6,437, suggesting growth in company value.

4. Due Diligence Notes:

• Investigate the nature and terms of the director’s loan account to understand repayment plans and impact on company cash flow.
• Review cash flow statements and profit and loss details (not included) to confirm the quality of earnings and ability to cover corporation tax liabilities.
• Assess business model sustainability given the small scale and single employee/director structure.
• Confirm no contingent liabilities or off-balance sheet obligations exist that could impair solvency.
• Verify the accuracy of fixed asset valuation and depreciation policy given the recent addition of plant and machinery.