FD ACADEMY LTD

Executive Summary

FD Academy Ltd exhibits a deterioration in financial health marked by negative net assets and net current assets as of 31 December 2023, indicating potential solvency and liquidity challenges. Although the company remains compliant with statutory filings and operationally stable in terms of staffing, the erosion of equity and low cash reserves are significant concerns for investors. Further detailed financial review and management engagement are recommended to clarify the underlying causes and assess future viability.

FD ACADEMY LTD - Analysis Report

Company Number: 13104935

Analysis Date: 2025-07-20 12:04 UTC

1. Risk Rating: HIGH
   The company shows negative net assets and net current assets as of the latest financial year end, indicating potential solvency and liquidity issues.

2. Key Concerns:

• Negative net current assets of £57 and overall net liabilities suggest that current liabilities exceed current assets, posing a liquidity risk.
• Decline in shareholders' funds from a positive £306 in 2022 to negative £57 in 2023 signals erosion of equity and potential insolvency concerns.
• Minimal cash balance (£63) relative to current liabilities (£120) raises concerns about the company’s ability to meet short-term obligations.

3. Positive Indicators:

• The company remains active and compliant with filing deadlines; no overdue accounts or confirmation statements.
• Stable number of employees (2) over the last two years indicates operational continuity.
• The business is classified under "Other sports activities," which may have niche market opportunities.

4. Due Diligence Notes:

• Investigate the reasons behind the significant decline in profit and loss reserves from (£6) to (£369) in 2023.
• Review underlying causes for the negative net asset position, including any contingent liabilities or off-balance sheet risks.
• Assess cash flow statements and management commentary (not provided) to understand operational cash flow and working capital management.
• Confirm whether there are any director or related party loans or guarantees that may impact financial stability.
• Evaluate business model sustainability and revenue generation capacity given the negative equity position.