COMMANDOFIT BRISTOL LIMITED

Executive Summary

CommandoFit Bristol Limited shows signs of financial strain, with declining net assets and persistent negative working capital despite some cash improvement. The company remains solvent but liquidity risks and limited equity buffer warrant conditional credit approval with focused monitoring on cash flow and liabilities management. The concentrated ownership and small operational scale increase risk, but potential exists for recovery if cash flows improve.

COMMANDOFIT BRISTOL LIMITED - Analysis Report

Company Number: 13031554

Analysis Date: 2025-07-19 12:53 UTC

1. Credit Opinion: CONDITIONAL APPROVAL

CommandoFit Bristol Limited is an active private limited company operating in the fitness facilities sector. The company has been trading since late 2020 and is controlled entirely by a single director and shareholder, Mr. Joseph Cottle, which simplifies accountability but also concentrates operational risk. The financial data indicates a declining net asset position over the last two years and persistent negative working capital. While the company remains solvent with positive net assets, the deterioration in equity and working capital raises concerns about liquidity and short-term financial resilience. Therefore, credit approval should be conditional, subject to regular monitoring of liquidity metrics and the company's ability to improve cash flow and reduce current liabilities.

2. Financial Strength:

• Net assets have decreased from £6,118 in 2023 to £2,355 in 2024, a 62% decline, driven by reduced retained earnings and the amortisation write-off of goodwill.
• The company’s fixed assets (tangible) stand at £8,700, primarily gym equipment and motor vehicles, which are depreciating assets.
• Intangible assets (goodwill) have been fully amortised in the current year, resulting in a zero carrying amount, removing a non-cash asset buffer.
• The balance sheet shows persistent negative net current assets (working capital) of approximately £4,605 in 2024, slightly worse than the previous year.
• Provisions for liabilities have remained stable at around £1,740.
• The company has minimal share capital (£100), indicating limited equity buffer.

Overall, the financial strength is weak with erosion of net assets and continued negative working capital, which could constrain operational flexibility and creditworthiness.

3. Cash Flow Assessment:

• Cash at bank increased from £3,592 in 2023 to £5,895 in 2024, showing some improvement in liquidity.
• However, current liabilities have increased from £8,086 to £10,500, outpacing cash growth and worsening the working capital deficit.
• The company has a sole employee/director, limiting payroll liabilities but possibly reflecting limited operational scale.
• Other creditors and taxation/social security liabilities form the bulk of current liabilities; timely settlement of these is critical to avoid penalties or enforcement.
• The absence of profit and loss data prevents detailed cash flow from operations analysis, but the amortisation of goodwill and declining reserves suggest operational losses or limited profitability.

The company’s liquidity position is fragile. Despite increased cash holdings, rising current liabilities and negative working capital pose a risk to meeting short-term obligations. Close attention to debtor collections, expense management, and creditor negotiations is advised.

4. Monitoring Points:

• Track monthly cash balances and current liabilities to ensure working capital does not deteriorate further.
• Monitor tax and social security payables for timely clearance, as these are often priority liabilities.
• Review profitability trends once profit and loss data is available to assess operational sustainability.
• Watch for any changes in director ownership or additional funding injections to improve equity.
• Evaluate fixed asset disposals or impairments as they affect collateral value and balance sheet strength.
• Keep abreast of any overdue filings or changes in company status, as these can affect credit risk.