THE SUPERFICIAL BRAND LTD

Executive Summary

The Superficial Brand Ltd is a newly incorporated company exhibiting weak financial health with negative equity and significant liquidity shortfalls. The company’s ability to meet short-term liabilities is questionable without further capital support, resulting in a high credit risk profile. Continued monitoring of trading performance and cash flow will be essential before reconsidering credit facilities.

THE SUPERFICIAL BRAND LTD - Analysis Report

Company Number: 14859919

Analysis Date: 2025-07-29 20:22 UTC

1. Credit Opinion: DECLINE

The Superficial Brand Ltd shows significant financial weakness with net current liabilities of £50,476 and a shareholders deficit of £47,725 as at 31 May 2024, indicating negative equity and poor balance sheet health. The company is in its first financial year since incorporation and has minimal cash (£698) against short-term creditors of £51,174, suggesting significant liquidity risk and limited capacity to meet immediate obligations. The director’s stated commitment to support the company financially is noted but does not sufficiently mitigate the inherent risk for credit extension at this stage. Without evidence of profitable trading or cash flow generation, the company presents a high credit risk profile.

2. Financial Strength:

The company holds tangible fixed assets of £2,851 but has no material current assets aside from cash, resulting in net current liabilities of £50,476. The negative net assets position (-£47,625) and accumulated losses reflected in the profit and loss reserve (-£47,725) demonstrate that the company is undercapitalized. This financial structure is fragile and dependent on continued director support or external funding. The absence of retained earnings or equity buffer limits resilience against operational or market challenges.

3. Cash Flow Assessment:

Cash at bank is only £698, which is negligible compared to current liabilities of £51,174, highlighting immediate liquidity constraints. The company employed two staff on average but has no reported turnover or profit data available to assess operating cash inflows. The negative working capital position signals an inability to cover short-term debts from current assets, raising concerns over the company’s ability to sustain operations without additional capital injections or credit support.

4. Monitoring Points:

• Future trading performance and revenue growth to assess progress towards profitability.
• Cash flow statements and operating cash inflows to monitor liquidity improvement.
• Changes in working capital and current liabilities to evaluate short-term financial management.
• Director financial support and any new capital injections as indicators of solvency maintenance.
• Timely filing of subsequent accounts and confirmation statements to ensure compliance and transparency.