Company Number: 14502211

Analysis Date: 2025-07-29 12:33 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Boxing in Schools Ltd is a very young company (incorporated late 2022) operating in the sports and recreation education sector. The company shows growth in net assets and profitability in the latest financial year. However, there is a small working capital deficit as of the last year-end, and the company carries some medium-term liabilities. The director has a significant equity stake and has advanced funds to the company, which is positive for support. Credit approval is recommended but subject to conditions including monitoring of cash flow and receivables collection given the current tight liquidity position.

2. Financial Strength
   The company’s net assets increased from £3,788 in 2023 to £5,455 in 2024, evidencing growth and profitability (retained earnings of £5,355). Fixed assets of £10,933 mainly relate to tangible plant and machinery acquired during the year, showing investment into the business. However, current liabilities (£47,813) slightly exceed current assets (£47,384), resulting in a small negative net working capital of £429. There are also creditors due after one year (£5,049), indicating some longer-term financial obligations. Overall, the balance sheet shows modest but improving financial strength typical of a start-up phase company.

3. Cash Flow Assessment
   Cash at bank is low (£6,278) relative to current liabilities, and debtors are significant (£41,106), which suggests working capital is heavily reliant on timely collection of receivables. The director has loaned £40,671 to the company, which is expected to be repaid within 9 months post year-end, indicating reliance on insider funding for liquidity. Dividends of £23,354 were paid out, which may constrain cash reserves. The tight liquidity position and reliance on director funding warrant careful monitoring of cash flows and debtor ageing to ensure ongoing operational cash sufficiency.

4. Monitoring Points

• Receivables collection and ageing: ensure debtor balances are collected promptly to support cash flow.
• Working capital trends: monitor current asset and liability balances to avoid liquidity shortfalls.
• Director loan repayment status: confirm repayment on schedule to maintain liquidity support.
• Profitability and dividend policy: track future profits and dividend payouts to assess impact on retained earnings and cash.
• Fulfilment of any medium/long-term liabilities obligations.