TANNING HOUSE LEICESTER LTD

Executive Summary

TANNING HOUSE LEICESTER LTD shows a positive start with solid liquidity and a clean balance sheet typical of a micro-entity in its first year. The company’s financial "vital signs" indicate it is currently healthy but operationally lean. Moving forward, expanding operational capacity and building financial reserves will be key to ensuring sustainable growth and long-term financial wellness.

TANNING HOUSE LEICESTER LTD - Analysis Report

Company Number: 14812614

Analysis Date: 2025-07-29 14:24 UTC

Financial Health Assessment for TANNING HOUSE LEICESTER LTD

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1. Financial Health Score: B

Explanation:
As a micro-entity in its first financial year, the company shows a solid start with positive net current assets and shareholders’ funds. The company demonstrates a "healthy cash flow" position with more current assets than current liabilities, indicating it can meet short-term obligations comfortably. However, the absence of employees and limited scale suggest early-stage risks and growth challenges. Overall, the company is financially stable but still at an embryonic stage.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	5,229	Represents available liquid resources
Current Liabilities	2,701	Short-term obligations due within a year
Net Current Assets	2,528	Positive working capital, good liquidity
Total Assets Less Current Liabilities	2,528	Net asset base after covering short-term debts
Net Assets / Shareholders Funds	2,528	Owner’s equity, indicates financial buffer
Average Number of Employees	0	No staff employed, potential operational constraints

• Positive Net Current Assets: A sign of a "healthy cash flow," meaning the business can pay off its immediate debts.
• Net Assets Positive: Indicates the company’s balance sheet is not in distress; it has a buffer after liabilities.
• No Employees: Could indicate reliance on owner-directors or contractors; potential "symptom" of limited operational capacity or very lean structure.

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3. Diagnosis

• Early-stage Financial Health: TANNING HOUSE LEICESTER LTD is in its infancy, having incorporated in April 2023 and reporting its first set of accounts for the year ending March 2024.

• Liquidity Strength: The company’s liquidity position is sound with net current assets amounting to £2,528, meaning it has sufficient short-term assets to cover its immediate liabilities without stress.

• Capital Structure: The sole equity base (£2,528) is modest but positive, reflecting initial capital invested or retained in the business.

• Operational Footprint: No employees reported, which is typical for micro-entities but may limit operational scalability. It suggests reliance on directors or subcontracting.

• Governance & Control: Ownership and control are concentrated with Miss Dorota Kasprzak (75-100% shares and voting rights), which may provide clear leadership but also concentration risk.

• Industry Context: Classified under SIC code 96020 (Hairdressing and other beauty treatment), a sector often requiring physical premises and skilled labor. The current financials do not reflect any fixed assets investment, which may indicate rental arrangements or minimal capital expenditure so far.

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4. Recommendations

• Build Cash Reserves: Maintain and grow positive net current assets to cushion against any unexpected expenses or downturns, ensuring ongoing liquidity.

• Operational Expansion: Consider hiring or contracting skilled staff to increase service capacity and revenue generation, moving beyond sole director operation.

• Invest in Fixed Assets: Evaluate the need for equipment or premises investment to improve service delivery and competitive positioning.

• Financial Monitoring: Regularly track working capital and cash flow to detect early symptoms of financial distress, especially as the business scales.

• Governance Practices: Document clear governance and decision-making processes to mitigate risks associated with concentrated ownership.

• Growth Planning: Develop a business plan that includes financial projections, market analysis, and funding requirements to support sustainable growth.

• Compliance and Reporting: Continue timely filing of accounts and confirmation statements to avoid penalties and maintain good standing with Companies House.

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