EVOLVE MOTORSPORT LIMITED

Executive Summary

Evolve Motorsport Limited is a recently established micro-entity operating in the sports activities sector with a modest net asset base and a negative working capital position, which raises medium-term liquidity concerns. While the company maintains compliance with filing requirements and benefits from clear ownership structure, the lack of profit and loss data limits assessment of operational sustainability. Further financial detail and cash flow analysis are recommended to better understand its risk profile.

EVOLVE MOTORSPORT LIMITED - Analysis Report

Company Number: 14573873

Analysis Date: 2025-07-29 19:15 UTC

1. Risk Rating: MEDIUM
   The company is a newly incorporated micro-entity with limited financial history. Its balance sheet shows a small positive net asset base but negative working capital, which signals potential liquidity stress. However, there is no indication of overdue filings or insolvency proceedings, which mitigates immediate solvency concerns.

2. Key Concerns:

• Negative Net Current Assets: Current liabilities (£17,907) exceed current assets (£14,338) by £3,569, indicating short-term liquidity pressure. The company may struggle to meet immediate obligations without additional funding or improved cash flow.
• Minimal Net Asset Base: With net assets of only £901, the company has very limited equity buffer to absorb operational or financial shocks. Its solvency is fragile and highly sensitive to adverse events.
• Lack of Profit & Loss Data: The absence of profit and loss information restricts assessment of operational performance and sustainability. This lack of transparency limits the ability to evaluate ongoing viability.

3. Positive Indicators:

• Compliance with Filings: The company has no overdue accounts or confirmation statements, demonstrating good regulatory compliance so far.
• Low Fixed Asset Base: Fixed assets are minimal (£4,470), suggesting a relatively asset-light business model which may allow operational flexibility.
• Ownership and Control Clarity: Single controlling shareholder/director with 75-100% ownership provides straightforward governance and clear accountability.

4. Due Diligence Notes:

• Obtain detailed management accounts or profit and loss statements to evaluate revenue generation and cost structure.
• Investigate the nature and timing of current liabilities to assess if these are trade payables, accrued expenses, or short-term borrowings.
• Review cash flow forecasts or bank statements to confirm liquidity sufficiency and funding sources.
• Verify directors’ experience and strategy given the company’s early stage and sector classification (other sports activities).
• Monitor future filings for trends in financial health and compliance status.