BROOKLYN FITNESS LIMITED

Executive Summary

Brooklyn Fitness Limited, a newly incorporated micro-entity, currently exhibits significant solvency and liquidity risks evidenced by negative net assets and current liabilities exceeding any reported assets. While regulatory compliance is maintained, the company’s financial position and concentrated ownership structure present substantial risk concerns. Further inquiry into cash flows and operational viability is advised before any investment consideration.

BROOKLYN FITNESS LIMITED - Analysis Report

Company Number: 14281697

Analysis Date: 2025-07-29 19:25 UTC

1. Risk Rating: HIGH
   Justification: Brooklyn Fitness Limited shows negative net assets (£-34,802) at its first reported year-end, indicating insolvency on a balance sheet basis. Current liabilities exceed any reported current assets, suggesting immediate liquidity concerns. The company is very young, with a single director/shareholder, and minimal operational history, heightening risk.

2. Key Concerns:

• Negative shareholders’ funds and net assets signal potential insolvency risk and inability to meet creditor claims from existing assets.
• Current liabilities of £33,650 with no disclosed current assets or cash position raise concerns about short-term liquidity and cash flow adequacy.
• Single director and sole controlling shareholder structure concentrates operational and governance risk, with limited external oversight or resource diversity.

3. Positive Indicators:

• Company is compliant with statutory filing deadlines for both accounts and confirmation statements, indicating regulatory compliance and governance awareness.
• Micro-entity status reflects small scale operations, potentially limiting exposure to large liabilities or complex operational risks at this stage.
• Accounts prepared under FRS 105 and unaudited, standard for micro-entities, suggest straightforward accounting practices.

4. Due Diligence Notes:

• Investigate the company’s cash flow situation, including any off-balance sheet financing or director loans that may support liquidity.
• Clarify the nature and composition of current liabilities (£33,650), including any related party balances or overdue payments.
• Assess business model viability given the negative equity at an early stage—review trading activities, revenue generation, and business plan.
• Confirm if any contingent liabilities or guarantees exist that may further impact solvency.
• Review director’s background and financial support capacity given sole control and responsibility.