Company Number: 13573614

Analysis Date: 2025-07-29 15:53 UTC

Financial Health Assessment for FBC HARROGATE LIMITED

---

1. Financial Health Score: C

Explanation:
FBC HARROGATE LIMITED shows some foundational stability in its financial position but exhibits concerning signs such as deteriorating liquidity and a shrinking asset base. The company is currently solvent but has symptoms of cash flow stress and weakening working capital, warranting caution and remedial actions to improve financial wellness.

---

2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Turnover	Not reported for 2024	50,956	Absence of turnover figures for 2024 limits revenue trend analysis. 2023 turnover is modest.
Fixed Assets	8,171	8,635	Slight decline indicates minimal reinvestment or asset disposals; assets largely stable.
Current Assets	3,993	7,527	Significant decline signals reduced liquid resources or receivables; liquidity weakening.
Current Liabilities	10,348	9,678	Increased short-term obligations, raising pressure on immediate cash needs.
Net Current Assets	-6,355	-2,151	Negative and worsening working capital, a "symptom of distress" in short-term financial health.
Total Assets Less CL	1,820	6,488	Shrinking residual assets after covering current liabilities points to weakened cushion.
Net Assets / Equity	1,820	5,624	Declining shareholder funds reduce financial strength and ability to absorb shocks.
Employees	0	0	No employees suggests owner-operated or minimal operational scale.

Additional observations:

• The company is classified as a micro-entity with minimal filing requirements.
• No auditor's report due to exemption under small companies regime.
• Director David Ward holds full control (75-100% shares and voting rights).
• Company operates in the fitness facilities sector (SIC 93130).

---

3. Diagnosis: Financial Health Condition

Overall Condition: Concerning but not critical

• The company’s financial health shows symptoms of liquidity strain: current liabilities exceed current assets by a substantial margin, and this gap has widened over the past year.
• Declining equity and net assets reflect erosion of the company’s capital base, which may restrict future borrowing or investment capacity.
• Lack of turnover data for 2024 is a red flag; if revenue fell significantly or ceased, this would explain the worsening liquidity and equity.
• Absence of employees indicates a potentially lean or very small operation, possibly relying on the directors’ efforts.
• The company is not in liquidation or administration but should be monitored closely to avoid slipping into distress.
• Management must address the working capital deficit to maintain operational viability.
• The fixed asset base is stable but not growing, suggesting limited reinvestment or asset acquisition.

In medical terms, the company’s "vital signs" show a heart that is still beating but pumping weaker blood (cash and working capital), signaling an urgent need for intervention to prevent further deterioration.

---

4. Recommendations: Steps to Improve Financial Wellness

Short-term:

• Improve Liquidity:
  • Accelerate collection of receivables and manage payables to reduce current liabilities.
  • Consider short-term financing options if necessary to cover working capital gaps.
• Revenue Monitoring:
  • Track and report turnover regularly to detect and address declines promptly.
  • Explore strategies to increase sales or diversify income streams in the fitness sector.

Medium-term:

• Cost Control:
  • Review expenses to identify non-essential costs and improve operational efficiency.
• Capital Injection:
  • Consider additional equity financing from the shareholder or external investors to strengthen net assets.
• Financial Planning:
  • Prepare detailed cash flow forecasts and budgets to anticipate liquidity needs and avoid surprises.

Governance and Reporting:

• Transparency:
  • Ensure timely and complete filing of accounts and confirmation statements to maintain regulatory compliance and stakeholder confidence.
• Professional Advice:
  • Engage financial advisors or accountants to assist with restructuring plans if liquidity issues persist.

---