Company Number: 14785633

Analysis Date: 2025-07-20 12:42 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net asset position and net current liabilities within its first year of operation, indicating immediate solvency concerns. The limited asset base and negative equity highlight a risk that the company may struggle to meet obligations without additional funding or positive cash flow.

2. Key Concerns:

• Negative Net Assets and Working Capital Deficit: With net current liabilities of £313 and shareholders’ funds negative by £313, Eternal Athletic Ltd is technically insolvent on a balance sheet basis at the latest reporting date.
• Limited Financial History and Scale: Incorporated in April 2023 and reporting for just over one year, the company has limited operating history and financial track record, restricting visibility on sustainability.
• Concentration of Control: One individual, Mr Daniel Luc Grasso, owns 75-100% of shares and voting rights, raising governance and succession risk considerations for external investors.

3. Positive Indicators:

• Current Assets Include Some Cash: £1,590 in cash provides minimal but immediate liquidity to meet short-term expenses.
• Timely Filing and Compliance: No overdue filings for accounts or confirmation statements suggest good regulatory compliance and governance practices so far.
• Small Scale Structure: Operating as a small private limited company with only two employees may allow for lean cost management and flexibility in early-stage development.

4. Due Diligence Notes:

• Investigate the nature and timing of the company’s creditors and whether any liabilities are overdue or subject to dispute.
• Obtain management accounts or cash flow forecasts to assess short-term liquidity and whether additional capital injections are planned or anticipated.
• Understand the business model and revenue generation plans to evaluate operational sustainability beyond the initial loss-making period.
• Review director and shareholder arrangements, including any related party transactions or funding commitments from Mr Grasso.
• Confirm any contingent liabilities or off-balance-sheet obligations not reflected in the filed accounts.