IN FITNESS WE TRUST LTD

Executive Summary

IN FITNESS WE TRUST LTD shows signs of financial distress primarily driven by negative working capital and very low cash balances, despite a modest improvement in net assets. The absence of employees and lack of turnover information raise questions about operational viability. Compliance with filing obligations is a positive, but further investigation into revenue generation and cash flow is essential to assess the company’s sustainability and risk profile.

IN FITNESS WE TRUST LTD - Analysis Report

Company Number: 13952531

Analysis Date: 2025-07-20 14:58 UTC

1. Risk Rating: HIGH
   The company exhibits persistent negative net current assets and limited cash reserves, indicating liquidity and solvency challenges. Although there was a slight improvement in net assets, the overall financial position remains fragile for a company active for just over two years.

2. Key Concerns:

• Negative Working Capital: The company has net current liabilities of £15,276 as of March 2024, though improved from a deficit of £23,742 in the prior year. This signals ongoing liquidity constraints that may impair the ability to meet short-term obligations.
• Low Cash Holdings: Cash balances are minimal (£815 in 2024), insufficient to cover current liabilities (£28,661), raising concerns about immediate cash flow and operational continuity.
• Operating Scale and Sustainability: The company reported no employees during the year and no turnover data is presented, which may imply limited or no operational activity. This questions the sustainability and revenue generation capacity of the business.

3. Positive Indicators:

• Improved Net Assets: The company moved from net liabilities of £5,883 in 2023 to net assets of £2,336 in 2024, reflecting some capital injection or retained earnings improvement.
• No Filing Overdue: The company is compliant with its filing deadlines for accounts and confirmation statements, indicating good regulatory adherence.
• Directors’ Background: Both directors are actively involved with relevant industry experience (Personal Trainer and Regional Manager), which may support operational knowledge.

4. Due Diligence Notes:

• Revenue and Profitability: Investigate actual turnover and profit/loss figures, as the accounts omit the profit and loss statement. Confirm whether the company is generating sustainable revenue.
• Cash Flow and Financing: Review detailed cash flow statements and sources of funds, including whether directors or shareholders have provided financial support.
• Trade Debtors and Creditors: Validate the nature and collectability of debtors (£12,570), and understand the composition and terms of creditors (£28,661).
• Operational Activity: Confirm the business model, client base, and operational status given no employees are reported and limited fixed assets.
• Future Plans and Going Concern: Assess management’s plans to address working capital deficits and maintain solvency.