BREEZE ACADEMY LIMITED

Executive Summary

BREEZE ACADEMY LIMITED has established a foothold in the sports and recreation education market with solid liquidity and committed leadership. To capitalize on growth, the company should diversify services, expand geographically, and leverage technology while addressing financial constraints and competitive pressures through prudent capital management and strengthened governance.

BREEZE ACADEMY LIMITED - Analysis Report

Company Number: 13970193

Analysis Date: 2025-07-29 17:51 UTC

1. Executive Summary
   BREEZE ACADEMY LIMITED operates in the niche yet growing sports and recreation education sector, positioning itself as a private limited company with a solid start since its incorporation in 2022. The company demonstrates early-stage financial stability with positive net assets and increasing shareholder funds, supported by strong cash reserves and prudent working capital management.

2. Strategic Assets

• Niche Market Focus: Operating under SIC code 85510, BREEZE ACADEMY targets the specialized sports and recreation education segment—a field with steady demand driven by increasing health awareness and youth engagement in sports.
• Financial Stability and Liquidity: The company holds £172k in cash, representing strong liquidity to fund operations and investments without heavy reliance on external financing. Net current assets remain positive (£27k), indicating effective short-term financial health.
• Experienced Leadership with Skin in the Game: Both directors, Carl and Kathryn Clarkson, hold significant equity (25-50% each) and have provided unsecured loans to the company, reflecting commitment and alignment with company success.
• Asset Base: Tangible assets including leasehold improvements and plant & machinery (£17k net book value) provide a physical foundation to deliver services, while goodwill amortization suggests some intangible assets possibly from initial business setup or acquisitions.

3. Growth Opportunities

• Service Diversification: Expanding beyond current offerings into complementary areas such as digital sports coaching, corporate wellness programs, or partnerships with schools and community centers can widen revenue streams.
• Geographical Expansion: Currently based in Hebburn, Tyne and Wear, there is potential to scale regionally or nationally leveraging the growing demand for sports education and recreation.
• Leverage Technology: Investing in online platforms or app-based engagement can increase client reach and operational efficiency. This may also facilitate data collection for personalized training programs, enhancing competitive positioning.
• Capitalizing on Grants and Funding: The presence of capital grants (£2k after one year) indicates access to external funding sources; pursuing further grants or sponsorships could underwrite expansion or facility upgrades.
• Talent Acquisition: Increasing employee headcount beyond current four employees can support service scalability and innovation.

4. Strategic Risks

• Modest Profitability and Equity Base: With net assets at approximately £14k and relatively small shareholder funds, financial cushion against shocks is limited. The company must carefully manage cash flow to avoid liquidity strain as it scales.
• Dependence on Directors: Heavy reliance on two directors who hold significant ownership and operational roles may constrain governance diversity and increase risk if either departs.
• Competitive Market: The sports education industry is competitive and fragmented, possibly dominated by established players with wider resources or brand recognition. Differentiating service quality and brand identity is critical.
• Creditors and Debt: The company shows bank loans totaling approximately £50.6k (current and long-term), which, while manageable, require disciplined servicing to avoid financial distress. Deferred tax liabilities also suggest potential future cash outflows.
• Limited Historical Data: Being a recent start-up (2022 incorporation), limited operational history restricts visibility into long-term performance and market acceptance, posing an inherent risk for stakeholders.