FETCH CLUB TRAINING LIMITED

Executive Summary

Fetch Club Training Limited, a small private company in educational support services, shows signs of liquidity stress with net current liabilities of £14,114 as of May 2024. While shareholder funds remain positive, the increase in tax and VAT liabilities combined with reliance on a director’s loan indicate cash flow challenges. Conditional credit approval is recommended, subject to close monitoring of short-term liquidity and operational cash flow improvements.

FETCH CLUB TRAINING LIMITED - Analysis Report

Company Number: 13971048

Analysis Date: 2025-07-29 20:08 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Fetch Club Training Limited is an early-stage private company in the educational support services sector, with limited financial history (incorporated 2022). The company’s latest accounts show a weakened liquidity position due to a significant increase in current liabilities, including tax, VAT, and a director’s loan, causing net current liabilities of £14,114 as at May 2024. However, shareholder funds remain positive at £886, and the company has no overdue filings or administration issues. Approval may be considered with conditions such as close monitoring of cash flow and creditor settlements, and possible personal guarantees given the director’s substantial control and involvement.

2. Financial Strength:
   The balance sheet reveals a modest fixed asset base (£15,000 in tangible assets) acquired in the latest year, indicating some investment in operational capacity. The company’s equity has eroded from £2,854 in 2023 to £886 in 2024, primarily due to increased liabilities. The surge in current liabilities (from £7,399 to £24,976) is concerning, especially as it includes unpaid tax (£5,025) and VAT (£5,638), which suggests potential cash flow strain or delayed payments to HMRC. The director’s loan of £10,297 is interest-free with no repayment terms, which provides some flexibility but also indicates reliance on director funding.

3. Cash Flow Assessment:
   Cash at bank (~£10,757) covers only part of the current liabilities, resulting in negative working capital. The minimal debtor balance (£105) indicates limited receivables to convert into cash. The negative net current assets position signals liquidity risk; the company may struggle to meet short-term obligations without additional funding or improved revenue inflows. No formal audit was performed, and no income statement was provided, so cash generation and profitability cannot be fully evaluated. The director’s loan may be a stopgap for liquidity but is not a sustainable solution.

4. Monitoring Points:

• Track quarterly cash flow statements to ensure timely payment of tax and VAT liabilities to avoid penalties or enforcement action.
• Monitor ongoing profitability and turnover growth to assess ability to reduce reliance on director loans.
• Review any changes in director funding or new external financing arrangements.
• Keep an eye on creditor aging profiles to detect any payment delays to suppliers or HMRC.
• Ensure timely filing of future accounts and confirmation statements (currently up to date).