Company Number: 12792370

Analysis Date: 2025-07-20 15:27 UTC

1. Risk Rating: MEDIUM
   The company shows a significant decline in net assets and net current assets in the latest financial year, indicating increased solvency and liquidity risk. However, it remains solvent with positive net assets and current assets exceeding current liabilities.

2. Key Concerns:

• Decline in Net Assets: Net assets fell from £193,969 in 2023 to £82,658 in 2024, a reduction of over 57%, signaling potential financial stress or losses.
• Reduced Working Capital: Net current assets decreased from £150,127 to £46,889, which may constrain day-to-day operational liquidity.
• Limited Scale and Resources: As a micro-entity with only two employees and modest fixed assets (£35,769), operational capacity and financial flexibility appear limited.

3. Positive Indicators:

• No Filing or Compliance Issues: All accounts and confirmation statements are filed on time, indicating good regulatory compliance.
• Positive Net Assets and Working Capital: Despite declines, the company maintains a positive net asset position and working capital, suggesting it can currently meet short-term liabilities.
• Clear Ownership and Management: Directors and persons with significant control are identified with consistent involvement since incorporation, reducing governance ambiguity.

4. Due Diligence Notes:

• Investigate the cause of the sharp decline in net assets and working capital between 2023 and 2024, including any extraordinary expenses, impairments, or loss-making operations.
• Review cash flow statements and profit & loss data (not provided here) to assess operational sustainability and cash generation capability.
• Confirm the nature of fixed assets and whether any disposals or impairments occurred that materially impacted the balance sheet.
• Assess the business model viability in the fitness facilities sector, particularly any impact from market conditions or competition that could affect future profitability.