Company Number: 15438270

Analysis Date: 2025-07-29 13:05 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks. Despite being a new entity, it reports net liabilities and negative shareholders' funds within its first financial year, indicating that its total liabilities exceed its assets by £11,871. Current liabilities exceed current assets, and there is a substantial amount of long-term debt (£13,667) relative to its total assets, raising concerns about its ability to meet financial obligations.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company’s net liabilities of £11,871 and negative equity position highlight financial distress and potential insolvency risk.
• High Leverage and Debt Burden: Long-term bank loans of £13,667 compared to modest tangible fixed assets and current assets suggest a heavy debt load that may pressure cash flows.
• Liquidity Shortfall: Current liabilities (£5,019) nearly match current assets (£5,391), but cash on hand is very low (£642), and the debtor balance (£4,749) may not be readily collectible, potentially constraining operating liquidity.

3. Positive Indicators:

• Timely Filings and Compliance: The company is active, with no overdue statutory accounts or confirmation statements, indicating good regulatory compliance and governance practices.
• Experienced Directors: Both directors are sports coaches, likely with relevant expertise to operate the sport club business effectively.
• Asset Base: Although modest, the company has tangible fixed assets (£1,424), suggesting some investment in operational infrastructure.

4. Due Diligence Notes:

• Review the nature and terms of the bank loans, including repayment schedules and covenants, to assess refinancing risk and cash flow impact.
• Assess the collectability of debtors (£4,749) to verify liquidity assumptions and working capital availability.
• Investigate the company’s business model, revenue streams, and profitability trajectory, as no income statement details are provided.
• Evaluate the directors’ plans for addressing the negative net asset position and overall capital structure to understand sustainability.
• Confirm that the company continues to meet filing and governance obligations given its financial position.