BICESTER BOXING CLUB LTD

Executive Summary

Bicester Boxing Club Ltd demonstrates a stable financial condition with improved liquidity and positive net assets, indicating recovery from prior short-term financial strain. Although cash reserves have decreased, the company maintains a healthy equity base and lean operations, positioning it well for sustainable operations. Focused attention on cash flow management and operational efficiency will support continued financial wellness.

BICESTER BOXING CLUB LTD - Analysis Report

Company Number: 12870911

Analysis Date: 2025-07-29 16:40 UTC

Financial Health Assessment: BICESTER BOXING CLUB LTD

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1. Financial Health Score: B+

Explanation:
Bicester Boxing Club Ltd shows a stable financial position with positive net assets and improved working capital. The company carries low fixed assets relative to its size, consistent with a service-based fitness facility. While the net current assets and net assets have slightly decreased year-over-year, they remain positive, indicating resilience but also some signs of mild liquidity tightening. Overall, the company’s financial vital signs suggest it is healthy but should monitor cash flow closely to avoid symptoms of financial distress.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Fixed Assets	4,989	5,820	Modest long-term investment, typical for fitness club equipment. Slight decrease suggests some asset disposals or depreciation. Healthy for asset-light business.
Current Assets	4,715	10,903	Decrease in liquidity reserves (cash/debtors). Could indicate tighter cash flow or reduced receivables.
Current Liabilities	4,077	11,389	Significant reduction in short-term debts, positive sign of improved working capital management.
Net Current Assets	638	(486)	Turned positive from negative, showing improved short-term financial health and ability to cover immediate obligations.
Net Assets/Shareholders Funds	4,977	5,034	Stable equity base, minor decrease but remains positive, indicating ongoing business value.
Employees	2	2	Small workforce consistent with micro-entity status.

Interpretation:
The key vital signs show a company moving from a state of working capital deficiency (negative net current assets in prior year) to a modest surplus, indicating improved liquidity and operational control. The slight decline in fixed assets and overall net assets is not alarming but warrants monitoring.

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3. Diagnosis

Bicester Boxing Club Ltd is akin to a patient who has recently overcome a mild episode of financial strain — its “symptoms” of distress (negative working capital in prior year) have eased, replaced by a healthier cash flow position and reduced short-term liabilities. The company’s financial “vital signs” indicate it is maintaining stability with a positive equity cushion and manageable assets. However, the notable decrease in current assets suggests caution, as it may reflect tighter cash availability or reduced trade receivables.

The business operates within the fitness facilities sector, which can be sensitive to seasonality and economic cycles. The modest fixed asset base aligns with expectations for this industry, where equipment and premises are the main capital investments. With only 2 employees, the company appears lean, which helps control overheads.

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4. Recommendations

To strengthen financial wellness and sustain growth, consider the following actions:

• Improve Cash Reserves: The reduction in current assets suggests cash and liquid resources should be monitored carefully. Building a buffer against unexpected expenses or seasonal fluctuations will reduce risk of short-term liquidity stress.

• Manage Receivables and Payables: Continue to optimize the collection of any outstanding payments and negotiate payment terms with suppliers to maintain positive net current assets and healthy cash flow.

• Asset Maintenance: Ensure fitness equipment and any other fixed assets are well-maintained to avoid unexpected capital expenditures, preserving the company’s asset base without overspending.

• Financial Planning: Develop detailed cash flow forecasts incorporating seasonality and business cycles typical of fitness facilities to anticipate funding needs and avoid potential liquidity crunches.

• Growth Strategy: Explore opportunities to increase membership or diversify services to improve turnover and profitability, thereby enhancing retained earnings and shareholders' funds.

• Regular Monitoring: Continue regular financial health check-ups to catch any early warning signs such as declining net current assets or increasing liabilities.

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