Company Number: 13057433

Analysis Date: 2025-07-19 12:46 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   BODY SMART COACHING LTD is a micro-entity with limited financial scale but shows consistency in filing and compliance. The company’s net assets are positive but very minimal (£185) with a small positive trend year-over-year. However, the working capital position is negative (current liabilities exceed current assets), indicating liquidity constraints that could impair debt servicing ability. The business is very small with only one employee and low fixed assets, suggesting limited operational scale and resilience. The sole director and 100% owner demonstrates stable management control, but the minimal equity base and liquidity risk warrant caution. Approval could be granted with conditions such as a modest credit limit and regular cash flow monitoring.

2. Financial Strength:
   The balance sheet is very modest with net assets increasing slightly from £142 in 2022 to £185 in 2023. Fixed assets are minimal and stable (~£2,000), indicating no significant investment or capital intensity. Current liabilities exceed current assets by approximately £1,810, resulting in a negative net current asset position, which points to short-term liquidity stress. Shareholders’ funds are positive but very low, reflecting limited retained earnings or capital injections. Overall, the financial strength is weak due to low equity and liquidity shortfall.

3. Cash Flow Assessment:
   The current asset base (~£2,200) is insufficient to cover short-term liabilities (~£4,000), indicating the company relies on external funding or delayed payments to meet immediate obligations. The working capital deficit is a key concern, especially for a small business with a single employee and limited resources. Without detailed cash flow statements, the extent of operational cash generation is unclear, but the balance sheet suggests tight cash flow management is necessary. The company’s ability to meet credit repayments may be strained under adverse conditions.

4. Monitoring Points:

• Track quarterly or biannual cash flow statements to monitor liquidity improvements or deterioration.
• Monitor the trend in current liabilities and efforts to reduce short-term obligations.
• Watch for changes in net assets and shareholder equity to assess capital strengthening.
• Observe any changes in director or ownership that could affect governance or control.
• Review timely filing of accounts and confirmation statements to ensure ongoing compliance.