FIVE ELEMENTS GRACIE JIU-JITSU LIMITED

Executive Summary

Five Elements Gracie Jiu-Jitsu Limited is a newly established micro-entity with a positive but very modest net asset and working capital position. The company currently demonstrates basic solvency but limited financial strength and operating history. Credit approval is recommended on a conditional basis with low exposure and ongoing monitoring of liquidity and business performance.

FIVE ELEMENTS GRACIE JIU-JITSU LIMITED - Analysis Report

Company Number: 14314491

Analysis Date: 2025-07-20 11:54 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Five Elements Gracie Jiu-Jitsu Limited is a very small, newly incorporated private limited company operating in the sports and recreation education sector. The financials show a positive net current asset position but minimal net assets (£521), indicating a very thin capital base. Given its micro-entity status, the company likely has limited operating history and scale. The company appears solvent with current assets exceeding current liabilities, but the low asset base and limited financial data mean credit exposure should be minimal and monitored closely. Credit approval can be considered with conditions such as low facility limits, personal guarantees, or regular financial updates.

2. Financial Strength:
   The balance sheet as of 31 August 2023 shows current assets of £4,743 against current liabilities of £3,472, resulting in net current assets (working capital) of £1,271. The company holds no fixed assets, and net assets equal shareholders’ funds of £521 after accounting for accruals and deferred income (£750). This indicates very limited capital reserves and reliance on short-term operational cash flows. The company’s micro classification and single employee (likely the director) highlight its small scale and limited financial buffer.

3. Cash Flow Assessment:
   With current assets just covering current liabilities and a modest working capital surplus, liquidity is tight but positive. The absence of fixed assets suggests limited borrowing capacity against security. Cash flow management will be critical given the small cash reserves implied. The company’s ability to generate sufficient operating cash to meet ongoing obligations is unproven due to its recent incorporation and lack of historical financial data. Monitoring cash inflows and outflows is essential to ensure ongoing liquidity.

4. Monitoring Points:

• Regular review of updated management accounts or interim financials to track revenue growth and cash flow trends.
• Watch for any increase in current liabilities which could strain liquidity.
• Monitor director’s financial support or related party transactions as potential sources of funding or risk.
• Timely filing of annual accounts and confirmation statements to maintain compliance and transparency.
• Observe sector-specific risks in sports education, particularly any impact from economic downturns or regulatory changes.