BOX SMART ELITE BOXING CLUB LIMITED

Executive Summary

BOX SMART ELITE BOXING CLUB LIMITED exhibits a solid foundation with improving liquidity and positive net assets in its early years. While currently reliant on director loans and operating with no employees, the company shows no signs of financial distress. To enhance financial health further, it should diversify funding, increase operational scale, and improve financial transparency to support sustainable growth.

BOX SMART ELITE BOXING CLUB LIMITED - Analysis Report

Company Number: 14007213

Analysis Date: 2025-07-29 18:59 UTC

Financial Health Assessment of BOX SMART ELITE BOXING CLUB LIMITED

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1. Financial Health Score: B

Explanation:
BOX SMART ELITE BOXING CLUB LIMITED demonstrates a generally stable financial position with improving liquidity and net assets over its first two years of trading. The company has a healthy increase in cash reserves and a positive net current asset position, indicating good short-term financial wellbeing. However, the presence of director loans and absence of operational employees suggests reliance on internal financing and limited operational scale, which limits the strength of this score. The company’s financials are non-audited, and the profit and loss account has not been filed, which slightly restrains a higher rating.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Cash at bank and in hand	23,021	Healthy cash reserves increased nearly fourfold from £6,257 in 2023, indicating improved liquidity.
Current Liabilities	8,754	Low and manageable compared to cash and assets; largely director loans and accruals.
Net Current Assets	14,289	Positive and increasing, signaling good short-term financial health and working capital adequacy.
Net Assets (Equity)	5,535	Positive net assets improving from £1, reflecting accumulated retained earnings or funds injection.
Director Loans	6,256	Significant proportion of liabilities; reliance on internal funding sources rather than external.
Employees	0	No employees, suggesting a small or start-up phase operation with likely limited revenue generation.
Audit Exemption	Yes	Small company exemption used; financials unaudited, which may limit external credibility.

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3. Diagnosis: What the Financial Data Reveals

BOX SMART ELITE BOXING CLUB LIMITED is a very young private company (incorporated in 2022) operating in the sports/fitness sector. The company shows early-stage financial "vital signs" that are generally healthy:

• The cash flow is "healthy," with cash balances increasing significantly in the latest year, indicating positive cash management or new funding injections.
• The net current assets are solidly positive, meaning the company can cover its short-term obligations comfortably.
• The presence of director loans as a key liability suggests the company is still dependent on internal sources to finance operations rather than external borrowing or equity investment.
• The absence of employees points to a lean structure, possibly reliant on contractors or the directors themselves, which might limit scalability or revenue generation but also keeps costs low.
• The accounts are unaudited and the profit and loss account is not publicly filed, meaning there is limited transparency on operational profitability or revenue trends.
• The company has complied with filing deadlines and maintains an active status, which shows no immediate regulatory or compliance distress.

Symptoms of distress such as negative working capital, overdue filings, or significant losses are absent. However, the small scale and internal funding reliance may pose risks if growth or external funding is needed.

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4. Recommendations: Specific Actions to Improve Financial Wellness

1. Enhance Revenue Generation & Operational Scale
   Consider hiring staff or engaging more contractors to expand operations and increase revenue streams, moving beyond a skeletal structure.

2. Diversify Funding Sources
   Reduce reliance on director loans by exploring bank facilities, grants (common in sports sectors), or community funding to improve financial flexibility and reduce personal exposure of directors.

3. Improve Financial Transparency
   Although audit exemption applies, voluntarily preparing and sharing profit and loss accounts and management reports will enhance stakeholder confidence and aid strategic planning.

4. Build Reserves and Retain Earnings
   Continue to improve net assets by retaining earnings rather than distributing funds, to strengthen the balance sheet and prepare for future growth or unexpected costs.

5. Plan for Growth & Risk Management
   Develop a strategic business plan including financial forecasts, risk assessments, and cash flow management to anticipate future funding needs and operational challenges.

6. Maintain Compliance and Timely Filings
   Continue the good practice of timely statutory filings to avoid penalties and maintain company reputation.

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