Company Number: 14001724

Analysis Date: 2025-07-29 17:26 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risks as evidenced by negative net assets and shareholders’ funds (-£9,669), indicating liabilities exceed assets. The presence of considerable long-term creditor balances (£12,441) further exacerbates this concern. Limited cash reserves (£3,372) against current liabilities and ongoing reliance on director loans signal liquidity stress.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company’s net liabilities position reflects accumulated losses and insufficient equity, threatening solvency.
• High Long-Term Creditors: £12,441 owed beyond one year is substantial relative to total assets, raising questions about the company’s capacity to meet these obligations long-term.
• Dependence on Director Loans: The company relies on loans from a director and a related entity (Laturn Estates Ltd), totaling over £12,000, which may indicate cash flow problems and potential financial support issues if these loans are called in.

3. Positive Indicators:

• No Overdue Filings: The company is timely in submitting both accounts and confirmation statements, suggesting compliance with regulatory requirements.
• Small Employee Base Consistent with Size: The company employs two individuals, aligning with its small scale and potentially limiting fixed costs.
• Active Status and No Signs of Liquidation: The company remains active and is not under any formal insolvency procedures.

4. Due Diligence Notes:

• Investigate Loan Terms: Review the nature, terms, and repayment conditions of director and related-party loans to assess financial risk and potential contingent liabilities.
• Examine Cash Flow Projections: Obtain management forecasts to evaluate whether the company can generate sufficient cash flow to meet current and long-term liabilities.
• Assess Business Model Viability: Given the negative equity and small asset base, understand revenue streams, client retention, and market positioning in the physical well-being and coaching sector.
• Review Related Party Transactions: Confirm that related party dealings are conducted at arm’s length and do not unduly benefit insiders at the expense of creditors.