Company Number: 14655083

Analysis Date: 2025-07-29 16:57 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net asset position (£-2,381) and significant long-term liabilities (£4,000) relative to very low current assets (£458) and no employees, indicating serious solvency concerns given its recent incorporation.

2. Key Concerns:

• Negative Equity and Solvency Risk: The balance sheet shows net liabilities after accounting for long-term creditors, suggesting the company’s obligations exceed its assets. This is a critical red flag for solvency.
• Liquidity Constraints: Current liabilities (£1,839) substantially exceed current assets (£458), resulting in negative net current assets (£-1,381). This indicates a potential inability to meet short-term obligations as they fall due.
• Operational Scale and Sustainability: The company has no employees reported and minimal fixed assets (£3,000), which together with its recent incorporation (2023) may reflect an unproven business model or early-stage operational instability.

3. Positive Indicators:

• Compliance and Governance: The company has filed accounts and confirmation statements on time with no overdue filings, demonstrating adherence to statutory requirements and regulatory compliance so far.
• Clear Ownership and Control: Single shareholder and director structure with full control by Xxxxxx Xxxxxxxxname shown to subscribers may facilitate swift decision-making and governance clarity.
• Industry Focus: Operating in the hairdressing and beauty treatment sector (SIC 96020) which can be resilient and have relatively low capital intensity, potentially allowing for flexible cost management.

4. Due Diligence Notes:

• Investigate the nature and terms of the £4,000 long-term creditor liability to understand repayment obligations and creditor identity.
• Clarify the company’s business model, revenue streams, and plans to improve working capital given the negative net current assets.
• Review cash flow projections or any interim management accounts to assess the ability to cover short-term liabilities and sustain operations.
• Verify the absence of employees and whether the director is the sole operator, to gauge operational capacity and scalability.
• Confirm any related party transactions or director loans that could impact financial stability.