VINTAGE BARBERS (LOSTOCK HALL) LIMITED

Executive Summary

Vintage Barbers (Lostock Hall) Limited is a small, micro-entity with a stable but modest financial position. It demonstrates adequate equity and net current assets to meet current obligations. However, the noticeable reduction in liquidity warrants cautious credit exposure and ongoing monitoring of cash flow and working capital management. Overall, the company appears creditworthy for limited facilities with prudent oversight.

VINTAGE BARBERS (LOSTOCK HALL) LIMITED - Analysis Report

Company Number: 13552540

Analysis Date: 2025-07-19 11:53 UTC

1. Credit Opinion: APPROVE with caution. Vintage Barbers (Lostock Hall) Limited is a micro private limited company operating in hairdressing and beauty treatments. The company is active, compliant with filing deadlines, and shows modest but stable net assets. However, the business is relatively young (incorporated in 2021) and small in scale, with limited current assets and fixed assets. Its ability to service credit facilities looks adequate currently based on net current assets, but given its size and limited operating history, credit exposure should be moderate and closely monitored.

2. Financial Strength: The balance sheet shows total assets less current liabilities of £12,311 for FY2024, slightly down from £12,531 in FY2023. Fixed assets increased from £5,880 to £9,755, indicating some investment in long-term assets. Current assets dropped significantly from £13,530 to £5,098, while current liabilities fell from £6,879 to £2,542, resulting in net current assets of £2,556, down from £6,651. Shareholders’ funds have slightly declined but remain positive at £12,311, indicating modest equity backing the business. Overall, the balance sheet is sound but shows reduced liquidity compared to prior year.

3. Cash Flow Assessment: Current assets are primarily working capital components such as cash, trade debtors, and inventory. The sharp reduction in current assets and current liabilities suggests a tightening in working capital. The company maintains positive net current assets, implying it can meet short-term obligations comfortably at present. However, the decrease in liquidity signals a need for closer scrutiny of cash flow management to ensure ongoing ability to service debt and operational expenses. The average number of employees remains low (3), suggesting limited fixed overheads.

4. Monitoring Points:

• Liquidity trends: Monitor future current asset and liability movements to ensure working capital does not deteriorate further.
• Profitability and cash generation: As no profit and loss data is provided, obtaining insight into operating profitability and cash flow from operations is important.
• Fixed asset investment: Assess the nature and financing of increased fixed assets and impact on cash flow.
• Director conduct and governance: Directors have no adverse records; monitor for any changes.
• Business growth: Given small scale and sector, track revenue and client base growth to support credit extension.