Company Number: 14157334

Analysis Date: 2025-07-29 21:05 UTC

1. Risk Rating: LOW
   The company exhibits a solid net asset position with positive working capital and no indication of overdue filings or regulatory non-compliance. The micro-entity status and consistent filings suggest a stable, small-scale operation with manageable financial obligations.

2. Key Concerns:

• Declining net assets and current assets in the latest financial year, which may warrant monitoring for potential liquidity tightening.
• Relatively small fixed asset base and low capitalization, potentially indicating limited investment in long-term operational capacity.
• Limited financial disclosure as micro-entity accounts do not include profit and loss details, restricting assessment of profitability and operational cash flows.

3. Positive Indicators:

• Positive net current assets of £52,415 as of June 2024, demonstrating sufficient short-term liquidity to cover current liabilities.
• No overdue statutory filings including accounts and confirmation statements, reflecting good compliance and governance practices.
• Slight growth in average number of employees from 3 to 4, indicating operational expansion or stability in workforce.
• Shareholders’ funds remain positive and relatively stable at £55,428, suggesting no erosion of equity.

4. Due Diligence Notes:

• Obtain and review profit and loss accounts or management accounts to verify profitability and cash flow generation, which are not disclosed in micro-entity filings.
• Clarify reasons for the decline in current assets and net assets between 2023 and 2024 to assess any emerging financial pressures.
• Investigate customer concentration, supplier dependencies, and contractual commitments given the company’s small size and niche industry (hairdressing and beauty treatment).
• Review director’s background and PSC disclosures for any potential governance risks, though none are apparent from the data provided.
• Confirm absence of contingent liabilities or off-balance sheet exposures that could impact solvency.