YUA HAIR LTD

Executive Summary

YUA HAIR LTD demonstrates stable but minimal financial health typical of a micro-entity in its first year of operation, with positive net assets and no liabilities but very limited working capital. The company shows no symptoms of distress but remains in an early, vulnerable phase requiring careful cash flow management and capital building to support growth. Timely compliance and strategic planning for investment will be crucial for progressing to a stronger financial condition.

YUA HAIR LTD - Analysis Report

Company Number: 14849437

Analysis Date: 2025-07-29 17:40 UTC

Financial Health Assessment: YUA HAIR LTD (as of 31 May 2024)

---

1. Financial Health Score: C

Explanation:
YUA HAIR LTD is a newly incorporated micro-entity operating for just over one year. The company shows positive but minimal net assets (£239) and current assets (£139), with no liabilities. While these figures indicate an absence of financial distress, the absolute scale is very small and there is limited financial activity or operational scale to assess deeper health. The score "C" reflects a start-up stage with stable but very limited financial footing—neither strong growth indicators nor signs of distress yet.

---

2. Key Vital Signs

Metric	Value	Interpretation
Fixed Assets	£0	No investment in long-term assets, typical for a start-up or service-focused micro business.
Current Assets	£139	Minimal cash or receivables; indicates very limited working capital.
Current Liabilities	£0	No short-term debts or payables; no immediate financial pressure.
Net Current Assets	£139	Positive working capital, a "healthy cash flow" symptom, but very small in absolute terms.
Total Net Assets	£239	Positive equity base but very modest; reflects initial shareholder investment and retained earnings.
Shareholders’ Funds	£239	Entirely funded by the sole shareholder, no external debt financing.
Employees	1	Very small workforce, typical micro-entity scale.
Overdue Filings	None	Up to date with statutory filings, indicating good compliance and administrative health.
Company Status	Active	Operating without liquidation or administration risks.

---

3. Diagnosis

The company is in the very early "infant" stage of its lifecycle. The financial "vital signs" indicate no immediate symptoms of distress: no liabilities, positive net assets, and compliance with filing deadlines. However, the very low current assets and net assets suggest limited operational scale—like a patient with stable but minimal vital signs who has not yet been put through the stresses of business growth.

The absence of fixed assets and the micro-entity classification suggest the business model is likely service-oriented, low capital intensity, or in the initial phase before capital investment. The single employee aligns with this. The sole director and shareholder has full control, which can allow for agile decisions but also concentrates risk.

No cash flow statements are provided, but the small balances suggest cash flow is tight or minimal. This is not unusual for a micro-entity just in its first year.

---

4. Recommendations

• Build Working Capital: Seek to increase cash reserves and receivables to provide a buffer against unexpected expenses. Even small improvements in liquidity will strengthen the financial "immune system".

• Monitor Cash Flows Closely: Implement basic cash flow forecasting to anticipate any upcoming needs, especially if planning to scale or invest.

• Plan for Growth Investments: Consider if and when to acquire fixed assets or invest in business development to move beyond the start-up phase.

• Maintain Compliance: Continue timely filing of accounts and confirmation statements to avoid penalties or administrative complications.

• Explore Funding Options: If expansion is planned, look into micro-business loans, grants, or equity investment to bolster capital beyond the current shareholder funds.

• Document Financial Performance: As the company grows, keeping detailed records will aid in diagnosis of future financial health and support decision-making.

---