VISAGE BEAUTY LONDON LIMITED

Executive Summary

VISAGE BEAUTY LONDON LIMITED shows significant financial distress with worsening negative net assets and working capital deficits, indicating poor creditworthiness. The company’s ability to service debt or withstand economic shocks is highly limited without capital support. Credit approval is not recommended at this stage due to insolvency risks and liquidity constraints.

VISAGE BEAUTY LONDON LIMITED - Analysis Report

Company Number: 14018317

Analysis Date: 2025-07-29 12:49 UTC

1. Credit Opinion: DECLINE
   VISAGE BEAUTY LONDON LIMITED exhibits significant negative net assets and working capital deficits that have worsened markedly in the latest financial year. The company’s liabilities substantially exceed its assets by £67k, indicating insolvency on a balance sheet basis. This financial weakness, combined with being a recently incorporated micro entity in a competitive beauty treatment sector, suggests high credit risk and limited capacity to meet debt obligations without external capital injection or turnaround measures.

2. Financial Strength:
   The company’s balance sheet is weak and deteriorating. Fixed assets are negligible (£123), and current liabilities have nearly tripled from £23.8k in 2023 to £68.3k in 2024, while current assets have fallen sharply from £6.8k to £1.1k. Negative net current assets of £67.2k highlight poor liquidity and over-reliance on creditor financing. The negative shareholders’ funds reflect accumulated losses and erosion of owner equity, undermining financial resilience and solvency.

3. Cash Flow Assessment:
   The working capital position is highly strained with current liabilities far exceeding current assets. This indicates potential cash flow difficulties in meeting short-term obligations. The absence of audit and reliance on micro-entity accounting standards limit visibility into operational cash flow, but the sharp increase in creditors suggests delayed payments or increasing reliance on trade credit. The company will require improved cash management or external funding to sustain operations.

4. Monitoring Points:

• Reduction in current liabilities and improvement in net current assets
• Stabilization or growth in current assets, particularly cash and receivables
• Profitability trends and reduction of accumulated losses
• Director’s plans for recapitalization or restructuring to restore solvency
• Timely filing of future accounts and confirmation statements to avoid regulatory concerns