Company Number: 14265615

Analysis Date: 2025-07-29 12:09 UTC

1. Credit Opinion: APPROVE
   Evolve Muay Thai Ltd is a micro-entity with a clean filing record and no overdue accounts or returns, indicating good compliance discipline. The company’s balance sheet shows modest but positive net assets and working capital, with a small current liability base relative to current assets. Given the early stage of the business (incorporated in July 2022) and the limited scale, the credit risk is low. The company’s ability to meet short-term obligations appears sound, supported by positive net current assets and shareholders’ funds. No red flags such as insolvency or director disqualifications are present.

2. Financial Strength:
   The company’s net assets have increased from £846 in 2023 to £1,139 in 2024, indicating incremental retained earnings or capital injection. Fixed assets are zero, which is typical for a service-oriented business like physical well-being activities. Current assets increased from £1,044 to £1,519, while current liabilities rose moderately from £198 to £380. The net current assets (working capital) remain positive at £1,139, providing a buffer for short-term liabilities. Overall, the balance sheet is stable but reflects a very small capital base consistent with a micro business.

3. Cash Flow Assessment:
   Though detailed cash flow statements are not provided, the positive net current assets and rising current assets suggest adequate liquidity to support day-to-day operations. The company’s current liabilities are low relative to current assets, indicating no immediate liquidity pressure. Average employee count is small (2), which limits fixed overheads and supports a lean cash flow profile. The absence of debt or significant creditors reduces risk of cash flow strain.

4. Monitoring Points:

• Continued growth in net assets and working capital to ensure the business builds financial resilience.
• Monitoring of current liabilities to ensure they do not grow disproportionately to current assets.
• Tracking operating performance and profitability trends as the company matures beyond the micro-entity stage.
• Compliance with timely filing of accounts and confirmation statements to avoid regulatory penalties.