DADDYSGYM LTD

Executive Summary

Daddysgym Ltd demonstrates significant solvency concerns with negative net assets and a working capital deficit as of 2021, coupled with minimal capitalization and no employees. While the company remains compliant with filing requirements and is not in formal insolvency, the limited operational data and financial distress indicate a high risk profile requiring further updated financial information and operational clarity before investment consideration.

DADDYSGYM LTD - Analysis Report

Company Number: SC683546

Analysis Date: 2025-07-29 19:28 UTC

1. Risk Rating: HIGH
   The company presents a high risk profile primarily due to significant negative net assets and liabilities exceeding current assets by a large margin in its last reported financial year (2021). The absence of recent financial data beyond 2021 limits visibility, but the available information indicates financial distress.

2. Key Concerns:

• Negative Net Assets and Working Capital Deficit: The company reported net current liabilities of £5,643 and net assets of negative £6,723 as of 31 December 2021, indicating insolvency on a balance sheet basis.
• Insufficient Capitalization: Share capital is minimal at £2.00, providing little buffer against operational or financial shocks.
• No Employees and Limited Operational Data: The company employed no staff during the reported period and has limited disclosed financial activity, raising questions about its operational viability and revenue generation.

3. Positive Indicators:

• Current Filing Status: The company is active with no overdue filings or accounts, indicating compliance with Companies House requirements to date.
• Clear Ownership and Control Structure: Two individuals hold significant control with transparent ownership and voting rights, which could facilitate decision-making.
• No Indication of Insolvency Proceedings: The company is not under liquidation, administration, or receivership, suggesting no formal insolvency processes are underway as of the latest data.

4. Due Diligence Notes:

• Obtain most recent financial statements beyond 2021 to assess whether the negative equity position has improved or deteriorated.
• Investigate the company’s business activities and revenue streams given the SIC code for sports goods manufacture but no employees reported.
• Review director background and any related party transactions due to the director’s primary occupation as a dentist, which may imply limited involvement in the business.
• Confirm if the company has access to external funding or shareholder loans not reflected in the balance sheet.
• Verify if any contingent liabilities or off-balance-sheet obligations exist that may exacerbate financial risk.