Company Number: 14371795

Analysis Date: 2025-07-20 15:48 UTC

1. Credit Opinion: DECLINE. Acaster Gymnastics Ltd shows persistent net current liability positions with working capital deficits of £3,871 (2024) and £3,965 (2023). The company’s net assets have deteriorated from £1,127 to £345 over six months, indicating weakening financial strength. The low equity base and negative working capital raise significant concerns regarding its ability to meet short-term obligations and service debt. Given the limited trading history since incorporation in late 2022 and absence of profitability data, the company currently lacks the financial robustness to support additional credit facilities without substantial mitigants.

2. Financial Strength: The balance sheet reveals a small asset base dominated by fixed assets of £4,698 and current assets of £6,172, offset by current liabilities of £10,043. The company’s net asset value has declined by approximately 70% in six months, signaling erosion of shareholder funds. The company operates with minimal share capital (£2) and retains a negative net current asset position, which is a red flag for creditor risk. Although intangible assets are present (£2,160), these may have limited recoverable value. The financial trend is negative, indicating a weakening capital structure.

3. Cash Flow Assessment: Cash at bank is low at £1,112, insufficient to cover current liabilities of £10,043, highlighting liquidity risk. Debtors of £5,060 appear significant relative to cash but may be subject to collection risk. The company relies on borrowings (£6,822 current loans) to meet obligations, which could strain cash flows if revenues do not improve. The company employs only one staff member, limiting fixed overheads, but the working capital deficit and reliance on short-term borrowings indicate tight liquidity. Without detailed cash flow statements or profit and loss accounts, assessing operational cash generation is not possible, but indicators suggest vulnerability in cash flow management.

4. Monitoring Points:

• Working capital trends and ability to eliminate current liabilities exceeding current assets.
• Cash flow generation and debtor collection efficiency.
• Profitability metrics once available to assess operational viability.
• Changes in loan balances and repayment patterns.
• Any director actions to recapitalise or restructure debt.
• Timely filing of future annual accounts and confirmation statements to maintain transparency.
• Creditors’ aging reports to monitor payment behaviour and defaults.
• Impact of any external economic factors on demand for sports activities (SIC 93199).