Company Number: 13645018

Analysis Date: 2025-07-20 14:30 UTC

1. Risk Rating: MEDIUM
   The company exhibits some financial stability indicated by positive net assets and shareholder funds growth, but current liabilities significantly exceed current assets as of the latest year, signaling liquidity pressure. The micro-entity status limits available financial detail, constraining full risk assessment.

2. Key Concerns:

• Negative net current assets (£-7,461) in 2023 compared to positive net current assets in prior years, indicating worsening short-term liquidity and potential cash flow issues.
• Significant increase in director advances/credits during the year (£25,111 advanced and £31,111 repaid), which may suggest reliance on director funding for operations.
• Limited financial transparency due to micro-entity filing exemptions and absence of audit or review, increasing uncertainty around financial robustness.

3. Positive Indicators:

• Net assets and shareholder funds have improved from £7,271 in 2022 to £12,918 in 2023, reflecting growth in overall company value.
• Fixed assets increased substantially (£5,863 to £21,135), potentially indicating investment in operational capacity or equipment.
• No overdue filings for accounts or confirmation statements, demonstrating compliance with statutory requirements.

4. Due Diligence Notes:

• Investigate the nature and terms of director advances and repayments to understand dependency on related party funding and any contingent liabilities.
• Review cash flow statements if available, or request management accounts to assess operational cash generation and timing of liabilities.
• Confirm the valuation basis and usability of fixed assets as the large increase may not necessarily translate into liquidity or operational efficiency.
• Assess the business model sustainability given the SIC code 93130 (Fitness facilities), considering market competition and revenue trends since incorporation in 2021.
• Confirm there are no regulatory or compliance issues beyond what is publicly available, including director conduct records or pending investigations.