FIT STUDIO LIMITED

Executive Summary

Fit Studio Limited exhibits a deteriorating financial position with substantial and increasing negative net assets and working capital deficits. The company relies heavily on related party funding and holds minimal cash reserves, signaling high liquidity risk. Credit exposure is not advised until clear evidence of financial turnaround or capital support emerges.

FIT STUDIO LIMITED - Analysis Report

Company Number: 12781769

Analysis Date: 2025-07-20 18:26 UTC

1. Credit Opinion: DECLINE
   FIT STUDIO LIMITED shows a consistent and significant negative net asset position over the last four years, with shareholders’ funds deteriorating from -£5,647 in 2021 to -£29,571 in 2024. The company’s current liabilities vastly exceed its current assets, resulting in a negative working capital of nearly £30k in the latest year. This indicates poor financial health and an inability to meet short-term obligations without additional funding. The absence of employees and minimal cash reserves further heighten liquidity risk. Given these factors, the company lacks the financial capacity to service new debt or credit facilities without substantial improvement or external support.

2. Financial Strength:
   The balance sheet reflects a weak financial position. The company’s net liabilities position is worsening annually, driven by increasing current liabilities owed mainly to related parties (£29,371 in 2024). Share capital remains nominal (£100), and accumulated losses dominate the equity section. There are no fixed assets or other significant resources to leverage or sell. The company’s financial trajectory is negative, indicating operating losses or ongoing cash burn, though detailed profit & loss data is not filed. The reliance on related party funding suggests the business is currently sustained by insider support rather than operating cash flow.

3. Cash Flow Assessment:
   Liquidity is critically constrained with only £100 in cash and negative working capital of £29,571. The company’s current liabilities greatly outweigh current assets, posing a high short-term liquidity risk. No evidence exists of operational cash inflows or reserves to cover creditors. The absence of employees may imply minimal operating activity, possibly indicating a dormant or non-trading status despite being active legally. Without fresh capital injections or improved cash generation, the company’s ability to meet creditor demands is severely compromised.

4. Monitoring Points:

• Regular review of liquidity position and cash flow forecasts to detect any worsening trend.
• Monitor related party balances and their terms, as these are the main creditors.
• Watch for any changes in operating activity or business model that could improve financial performance.
• Track any capital restructuring or equity injections to restore net asset position.
• Confirm timely filing of accounts and compliance to assess management control and governance.