Company Number: 13559475

Analysis Date: 2025-07-29 20:02 UTC

1. Risk Rating: HIGH
   The company shows a negative net asset position (£-440) as of the latest accounts, indicating insolvency on a balance sheet basis. Current assets are minimal (£9) compared to current liabilities (£449), signaling liquidity stress. The company is a micro entity, limiting available financial detail, but the negative equity and small asset base raise significant solvency and liquidity concerns.

2. Key Concerns:

• Negative Shareholders’ Funds: The company’s net liabilities position (negative equity) suggests it is technically insolvent, which is a major red flag for creditors and investors.
• Minimal Current Assets vs. Liabilities: Current assets of only £9 against current liabilities of £449 suggest the company may struggle to meet short-term obligations and operational expenses.
• Director Turnover and Control: Two directors resigned within a short period, leaving a single current director. Though not inherently problematic, this turnover combined with financial distress warrants further scrutiny of governance and operational stability.

3. Positive Indicators:

• Timely Filing Compliance: The company is up to date with its statutory filings (accounts and confirmation statements) with no overdue submissions, indicating regulatory compliance awareness.
• Active Website and Market Presence: The company maintains an active website with a clear business proposition in athletic training, suggesting ongoing trading activity and customer engagement.
• Clear Ownership Structure: The presence of three persons with significant control owning 25-50% shares each provides clarity on governance and control, reducing ambiguity around ownership.

4. Due Diligence Notes:

• Review Detailed Financial Transactions and Cash Flows: Investigate the underlying causes of the negative equity position and minimal current assets, including any off-balance sheet liabilities or contingent liabilities.
• Assess Operational Viability: Verify whether the company is generating sufficient revenue and cash flow to sustain operations given the low asset base and current liabilities.
• Director Background Checks and Intentions: Given recent director resignations, examine the reasons for departures and the current director’s plans to address financial challenges.
• Examine Creditors and Debt Terms: Clarify the nature of the £449 current liabilities and any longer-term creditor arrangements that could affect solvency.
• Confirm No Related Party or Contingent Liabilities: Although no off-balance sheet disclosures are stated, confirm if any exist that could worsen financial risk.