THE WILLOW BARBERS LTD

Executive Summary

THE WILLOW BARBERS LTD exhibits a solvent but very small-scale financial position consistent with a micro-entity in the hairdressing sector. While regulatory compliance is current and the company shows modest operational growth, limited financial buffers and frequent director turnover introduce moderate risk factors. Further investigation into financial performance details and governance stability is advisable before making investment decisions.

THE WILLOW BARBERS LTD - Analysis Report

Company Number: 13976289

Analysis Date: 2025-07-29 15:14 UTC

1. Risk Rating: LOW to MEDIUM
   The company demonstrates positive net current assets and shareholders' funds, indicating a basic ability to meet short-term liabilities. However, the absolute values are minimal, reflecting a very small-scale operation with limited financial buffer, which introduces some risk in adverse conditions.

2. Key Concerns:

• Limited Financial Scale: With net current assets of only £375 and shareholders' funds at £375 as of March 2024, the company operates on a very tight margin, which could be vulnerable to unexpected expenses or downturns.
• Director Turnover: Frequent changes in directorship within a short period (multiple appointments and resignations between 2023 and 2025) may signal potential governance or operational instability.
• Micro-entity Status: Being categorized as a micro-entity restricts the level of financial disclosure and audit, limiting transparency and making a thorough financial assessment difficult.

3. Positive Indicators:

• Solvent Position: The company’s current assets exceed current liabilities, showing positive net working capital for the last two years, which suggests it can cover short-term obligations.
• Compliance: All filings, including accounts and confirmation statements, are up to date with no overdue notices, indicating adherence to regulatory requirements.
• Consistent Business Activity: The increase in average employee count from 3 to 5 suggests operational growth and a commitment to maintaining business activities in the hairdressing sector.

4. Due Diligence Notes:

• Financial Performance Details: Review the profit and loss account or cash flow statements, if available, to verify profitability and liquidity beyond the balance sheet snapshot.
• Director Backgrounds and Stability: Investigate reasons for frequent director changes and assess any potential impact on business continuity or governance risks.
• Business Model and Market Position: Understand the company's client base, competitive environment, and revenue streams to assess sustainability beyond the minimal financial figures.
• Related Party Transactions: With a single controlling shareholder holding 75-100% shares and voting rights, examine any related party transactions or potential conflicts of interest.