Company Number: 12807593

Analysis Date: 2025-07-19 12:56 UTC

1. Credit Opinion: DECLINE
   Beckenham Boxing Ltd shows a significant deterioration in financial position over the latest year, moving from positive net assets of £1,210 in 2023 to a net liability of £3,069 in 2024. The company's working capital position has worsened drastically, with net current liabilities increasing from £1,589 to £5,380. The large director’s loan account (£4,349) with no formal repayment terms or interest exacerbates credit risk. Given the negative equity, weak liquidity, and reliance on director funding without clear repayment plans, the company currently lacks the financial stability to meet additional credit obligations.

2. Financial Strength:
   The balance sheet reveals declining fixed assets and a sharp increase in current liabilities, primarily driven by the director’s loan account rising from £279 to £4,349. The company’s net assets turned negative, indicating potential insolvency risk. The absence of shareholders’ equity and accumulated losses reflected in the profit and loss reserve are concerns. The company’s capital base is minimal (£1 share capital) and unable to support operating or financing needs.

3. Cash Flow Assessment:
   Cash on hand is negligible (£1), indicating very limited liquidity. Current liabilities significantly exceed current assets, with working capital deficit at £5,380. This suggests the company may struggle to cover short-term obligations as they fall due. The director’s loan, while interest-free and unsecured, currently acts as a funding source but lacks formal terms, adding uncertainty to cash flow reliability. The absence of debt servicing capacity and minimal cash reserves represent a material liquidity risk.

4. Monitoring Points:

• Track changes in director’s loan balance and any formalization of repayment terms.
• Monitor improvements or further deterioration in net current assets and net liabilities.
• Review cash flow statements (if available) for operating cash generation or dependency on director funding.
• Observe management actions to restore profitability and equity, including possible capital injections or restructuring.
• Watch for any late filings or indicators of financial distress such as creditor pressure or administration.