LEGION BARBELL STRENGTH AND CONDITIONING CIC

Executive Summary

Legion Barbell Strength and Conditioning CIC exhibits a weak financial position characterized by negative net assets and working capital deficits, limiting its capacity to service debt or credit obligations. Its small scale, low turnover, and declining cash reserves suggest operational challenges and insufficient liquidity. Given these factors, credit approval is not recommended at this stage without significant financial improvement or external support.

LEGION BARBELL STRENGTH AND CONDITIONING CIC - Analysis Report

Company Number: 14220738

Analysis Date: 2025-07-29 16:30 UTC

1. Credit Opinion: DECLINE
   Legion Barbell Strength and Conditioning CIC presents as a very small, community interest company with limited financial scale and a negative net asset position as of the latest accounts. The company’s current liabilities exceed its current assets, resulting in a working capital deficit and negative net assets (£-385 as at 31 July 2024). This weak liquidity and balance sheet position raise concerns regarding its ability to meet short-term obligations or service any additional credit facilities. The minimal turnover and cash position further limit confidence in operational cash flow sufficiency. Given these factors and the lack of historical profitability data, the company is not presently a suitable candidate for credit approval.

2. Financial Strength:
   The balance sheet shows diminishing financial strength, sliding from positive net assets of £456 in the prior year to a deficit of £385. Current liabilities of £927 exceed current assets of £542, reflecting a net current liability position and indicating potential liquidity strain. The absence of fixed assets and reliance solely on cash as current assets highlight limited tangible collateral or capital base. The company operates with only three employees and modest turnover (£1,474 in 2023), consistent with a micro-entity profile. The private limited by guarantee structure and community interest status imply limited equity injection potential. Overall, the financial position is fragile and trending downward.

3. Cash Flow Assessment:
   Cash on hand has fallen significantly from £1,575 to £542 over the latest financial year, worsening liquidity. The company’s cash is insufficient to cover current liabilities, suggesting potential cash flow pressure. The absence of detailed profit and loss data or cash flow statements in the filings restricts a full assessment, but the negative net working capital and declining cash balance indicate operational cash generation is not robust. This raises questions on the company’s ability to sustain working capital needs without external funding or support.

4. Monitoring Points:

• Track monthly cash balances and short-term liabilities to identify liquidity stress early.
• Monitor any changes to turnover and operating expenses for signs of improving or worsening profitability.
• Keep watch on director appointments and any changes in control or governance that may affect financial stewardship.
• Review future filings to assess if net assets and working capital metrics improve.
• Evaluate any external funding or grants received given the community interest nature which may support operations.