EVER ADAPTIVE PERFORMANCE LTD

Executive Summary

EVER ADAPTIVE PERFORMANCE LTD is currently in a fragile financial state characterized by negative net assets and working capital deficits, though recent improvements are encouraging. Immediate focus on liquidity enhancement and balance sheet strengthening is critical to avoid worsening distress and to build a sustainable foundation for growth in the competitive fitness sector.

EVER ADAPTIVE PERFORMANCE LTD - Analysis Report

Company Number: 13188505

Analysis Date: 2025-07-29 17:38 UTC

Financial Health Assessment: EVER ADAPTIVE PERFORMANCE LTD

---

1. Financial Health Score: D

Explanation:
The company shows persistent net liabilities and negative net current assets over multiple years, indicating financial distress. Although the negative position improved significantly in the latest year, the company still operates with overall negative shareholders' funds, reflecting an ongoing struggle to maintain financial stability.

---

2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Current Assets	1,088	557	Slight increase, but still very low
Current Liabilities	1,932	8,472	Substantial decrease, improvement
Net Current Assets (Working Capital)	-844	-7,915	Negative but improving; short-term liquidity concerns
Net Assets (Total Equity)	-844	-7,915	Negative; company owes more than it owns
Shareholders’ Funds	-844	-7,915	Negative equity; business is undercapitalized

• Cash Flow Analogy: The company has "weak pulse" in cash terms, with just over £1,000 in current assets but nearly double in short-term liabilities, indicating a risk of running out of funds to meet immediate obligations.

• Trend: Although still in distress, the company is showing signs of improvement with reduced liabilities and smaller negative equity compared to prior years.

---

3. Diagnosis

EVER ADAPTIVE PERFORMANCE LTD exhibits symptoms of financial distress, primarily due to persistent negative net assets and net current liabilities. This indicates the company is operating with more debts than assets, which is akin to a patient with low vital signs struggling to maintain homeostasis.

However, the significant reduction in current liabilities from £8,472 to £1,932 and the improvement in net current assets suggest some positive interventions or changes in business operations. This could be due to better expense management, debt restructuring, or improved revenue generation.

The absence of fixed assets on the balance sheet and minimal share capital (£1.00) suggest the company is either asset-light or in an early/startup phase. The micro-entity accounting regime used also limits detailed disclosures, restricting deeper analysis.

The company has no employees currently, which may indicate reliance on the director’s personal efforts or outsourced activities, typical in early-stage or small service businesses such as fitness facilities.

---

4. Recommendations

• Improve Liquidity: Focus on increasing current assets, especially cash or receivables, to build a healthy buffer against short-term liabilities. This could mean accelerating client payments or reducing overhead costs.

• Address Negative Equity: Explore options to inject equity capital to strengthen the balance sheet. This might be through shareholder loans, personal funds from the director, or external investors.

• Enhance Revenue Streams: As a fitness facilities business, consider diversifying offerings or improving marketing to increase client base and cash inflow.

• Debt Management: Negotiate with creditors to spread out or reduce liabilities where possible, preventing liquidity crises.

• Financial Monitoring: Implement basic cash flow forecasting and budgeting to detect "symptoms" of cash shortfalls early and take corrective action.

• Seek Professional Advice: Engage with a financial advisor or accountant for tailored restructuring or turnaround strategies.

---