Company Number: 14525568

Analysis Date: 2025-07-20 15:18 UTC

1. Credit Opinion: DECLINE
   Bath Golf and Footgolf Ltd demonstrates significant financial distress as evidenced by persistent and deepening net current liabilities and negative shareholders' funds. The company has been trading since December 2022 but shows no signs of profitability or improved liquidity, with net current liabilities worsening from -£10,714 in 2023 to -£13,850 in 2024. The negative equity position (shareholders funds at -£10,398 in 2024) indicates accumulated losses and a fragile capital structure. The company’s ability to service debt or meet short-term obligations appears severely constrained, raising substantial credit risk. Given the lack of profitability, weak working capital, and negative net assets, approval of credit facilities cannot be recommended without substantial mitigating factors or external guarantees.

2. Financial Strength:
   The balance sheet reveals a low asset base dominated by tangible fixed assets (£3,552 in 2024) and minimal current assets (£1,216), insufficient to cover short-term liabilities (£15,066). The company’s net liabilities position (-£10,298) worsened over the year, reflecting that total liabilities exceed total assets, indicative of ongoing operating losses or heavy reliance on creditor funding. The shareholders’ deficit, driven by accumulated losses (P&L reserve at -£10,398), undermines the company’s financial resilience and restricts capacity to raise equity capital. The tangible fixed assets are modest and depreciating, offering limited security value for lending purposes.

3. Cash Flow Assessment:
   Cash balances remain very low (£570 at year-end 2024), although they have improved somewhat from £138 in 2023. However, this minor increase is overshadowed by the steep rise in current liabilities, suggesting cash flow pressures. Debtor levels are stable but small (£646), and there is no indication of significant cash inflows or working capital improvements. The company’s negative net current assets position (-£13,850) signals a liquidity crunch and difficulty in meeting short-term obligations without additional funding or creditor concessions. Operating cash flows are likely negative given the increasing losses and limited turnover implied by small current assets and debtor balances.

4. Monitoring Points:

• Monitor quarterly cash flow statements to assess liquidity trends and any improvement in cash generation.
• Track changes in current liabilities, particularly trade creditors and short-term borrowings, for signs of stress or renegotiation.
• Review management actions or restructuring plans aimed at reducing losses and strengthening the balance sheet.
• Watch for any related party funding or guarantees from the controlling entity (Future Golf Ventures Ltd) that might support liquidity.
• Evaluate any filings for delayed payments or director actions that could signal worsening financial health or potential insolvency proceedings.