TOP FADE BARBER T/A ARUIS LTD

Executive Summary

TOP FADE BARBER T/A ARUIS LTD is a small but financially stable micro-entity showing steady improvement in net assets and liquidity. While its limited operating history and size warrant cautious credit extension, current financials support approval with conditions and ongoing monitoring. The company’s sound short-term solvency and growth potential make it a viable candidate for modest credit facilities.

TOP FADE BARBER T/A ARUIS LTD - Analysis Report

Company Number: 14121662

Analysis Date: 2025-07-20 19:04 UTC

1. Credit Opinion: APPROVE with conditions.
   The company, TOP FADE BARBER T/A ARUIS LTD, is a micro-entity operating in hairdressing and beauty treatment with a short trading history since 2022. It shows steady improvement in net assets and working capital from £1,597 in 2023 to £2,967 in 2024, indicating cautious but positive financial management. The directors are experienced in the trade. However, due to limited size, short trading history, and low asset base, credit should be extended conservatively with monitoring of cash flow and profitability to ensure ongoing viability.

2. Financial Strength:
   The balance sheet is modest but improving. Current assets rose from £2,563 to £3,289, while current liabilities reduced significantly from £966 to £322, resulting in net current assets of £2,967 in 2024. Shareholders’ funds increased accordingly, reflecting retained earnings and positive equity growth. No long-term liabilities or fixed assets are reported, typical for this micro-entity. The financial position indicates sound short-term solvency and no signs of distress.

3. Cash Flow Assessment:
   With net current assets nearly £3,000 and a low liability burden, liquidity appears adequate for current operational needs. The average number of employees increased from 2 to 3, suggesting growth and operational scaling. However, the lack of detailed cash flow statements limits full assessment. Given the nature of the business, cash flow is likely driven by steady customer receipts and controlled expenses. Working capital management should be closely watched to avoid strain.

4. Monitoring Points:

• Continued growth in net assets and positive working capital trends.
• Ability to maintain or increase profitability to build reserves beyond micro-entity thresholds.
• Cash flow consistency with respect to seasonal fluctuations in the hairdressing sector.
• Stability in director appointments and management continuity given recent changes.
• Timely filing of accounts and returns to maintain regulatory compliance.