GONZALEZ FITNESS LIMITED

Executive Summary

Gonzalez Fitness Limited maintains a solvent position with positive net assets and working capital but shows weakening liquidity and equity in its second year of trading. The company’s limited financial history and declining cash reserves warrant conditional credit approval with emphasis on monitoring cash flow and operational performance closely. Further financial details on turnover and profit would strengthen credit assessment confidence.

GONZALEZ FITNESS LIMITED - Analysis Report

Company Number: 14156076

Analysis Date: 2025-07-29 21:04 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Gonzalez Fitness Limited is a very young company incorporated in 2022 and currently active in the "Other sports activities" sector. The company demonstrates positive net assets and net current assets, indicating solvency and adequate working capital. However, the decline in cash and net assets from £12,003 and £9,979 in 2023 to £8,008 and £5,819 in 2024 respectively signals weakening liquidity and some erosion of equity. The absence of turnover or profit and loss details limits assessment of profitability and operating cash flow, posing some risk. Given these factors, credit can be extended on a conditional basis with close monitoring, particularly if additional financial information on revenue and cash generation can be provided.

2. Financial Strength:
   The balance sheet shows modest fixed assets (£1,885) and current assets (£8,008 cash only) against current liabilities of £4,074, resulting in positive net current assets of £3,934. Shareholders’ funds stand at £5,819, reflecting a reduced but positive equity base. The company holds no long-term liabilities as per the latest accounts. The reduction in net assets and cash year-on-year suggests some capital consumption or cash burn, though the company remains solvent. The small share capital (£2) is typical for micro entities, but the reliance on equity reserves for funding is notable.

3. Cash Flow Assessment:
   Cash reserves decreased by about 33% (£12,003 to £8,008) during the year, which is a concern given the company’s limited fixed assets and no disclosed external borrowing. Current liabilities (primarily corporation tax £4,074) are covered by cash, leaving a modest liquidity buffer. The company’s working capital position is positive, but shrinking cash balances and net current assets indicate potential cash flow pressure. Without turnover or profit details, assessing operating cash flow is not possible, so liquidity risk remains.

4. Monitoring Points:

• Turnover and profitability trends in upcoming periods to assess operational viability.
• Cash flow management, including changes in cash reserves and working capital.
• Timely settlement of corporation tax liabilities and other short-term payables.
• Any changes in director or ownership structure affecting financial strategy.
• Filing of next annual accounts and confirmation statements to ensure compliance.