Company Number: 14294097

Analysis Date: 2025-07-20 12:48 UTC

1. Risk Rating: HIGH
   Justification: The company shows persistent negative net current assets indicating liquidity stress, with current liabilities significantly exceeding current assets as at the latest accounts date. The small scale of fixed assets and limited capital base heighten solvency concerns for meeting short-term obligations.

2. Key Concerns:

• Negative net current assets of £14,986 as at 31 August 2024 (previous year also negative), indicating insufficient working capital and potential cash flow challenges.
• Low asset base with fixed assets declining from £21,500 in 2023 to £17,200 in 2024, suggesting limited tangible resources to secure financing or cover liabilities.
• Very limited operational history (incorporated August 2022) with minimal financial information and no profit and loss account filed, restricting assessment of business sustainability and earnings quality.

3. Positive Indicators:

• Compliance with statutory filings is current with no overdue accounts or confirmation statements, demonstrating governance discipline.
• Ownership and control are consolidated under a single director and majority shareholder, which may facilitate swift decision-making.
• Micro-entity accounting regime applied, reducing administrative burden and costs, appropriate for company size.

4. Due Diligence Notes:

• Obtain and review the full profit and loss account and cash flow statements to evaluate operational performance and cash generation capability.
• Investigate the nature of current liabilities to assess their terms, creditor relationships, and risk of enforcement action.
• Assess the business model and revenue streams given the SIC code (Fitness facilities) to understand market position and sustainability.
• Review director and shareholder plans for capital injection or refinancing to address liquidity deficits.
• Confirm the absence of any director disqualifications or regulatory issues beyond the provided data.