Company Number: 13952767

Analysis Date: 2025-07-20 14:38 UTC

1. Risk Rating: MEDIUM
   The company shows signs of strain in liquidity with negative net current assets as of the latest accounts, though it remains solvent on a net asset basis. As a micro-entity with minimal employees and limited financial history, operational and financial stability risks are elevated but not critical at this stage.

2. Key Concerns:

• Negative net current assets (£-1,804) in the most recent year indicate potential short-term liquidity pressures and risk in meeting immediate obligations.
• Small scale with only one employee and limited fixed assets may restrict operational resilience and growth potential.
• Relatively new company (incorporated 2022) with only two years of financial data limits ability to assess long-term sustainability and profitability.

3. Positive Indicators:

• The company remains active with no overdue filings or compliance issues noted.
• Shareholders’ funds remain positive (£6,800) indicating solvency on a balance sheet basis.
• Directors have relevant professional backgrounds suggesting capable management (Quantity Surveyor/Project Manager and Personal Trainer).
• No indication of director disqualifications or governance concerns.

4. Due Diligence Notes:

• Review cash flow statements and recent management accounts to assess working capital and cash position trends beyond the balance sheet snapshot.
• Investigate the nature and timing of current liabilities to determine if any repayment or refinancing risks exist.
• Understand revenue streams and client base given the SIC code (fitness facilities) to evaluate operational sustainability and market position.
• Confirm directors’ plans for growth or capital injection to improve liquidity and operational scale.
• Verify absence of related party transactions or contingent liabilities not reflected in the accounts.