MOELWYN GYMNASTICS ACADEMY LTD

Executive Summary

Moelwyn Gymnastics Academy Ltd is a micro-entity with minimal financial resources and no liabilities, reflecting a very basic financial structure. The company’s liquidity has weakened over the last year, warranting cautious credit consideration. Conditional approval is recommended, subject to further information on cash flow and business viability to mitigate repayment risk.

MOELWYN GYMNASTICS ACADEMY LTD - Analysis Report

Company Number: 13679639

Analysis Date: 2025-07-29 19:24 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Moelwyn Gymnastics Academy Ltd is a very small, micro-entity operating as a private company limited by guarantee with no share capital. The company shows positive net assets but a significant reduction in current assets from £10,509 in 2022 to £3,522 in 2023, with no current liabilities reported in the latest year. This decline in working capital suggests a tightening of liquidity. The company has no employees and appears to be in an early or developmental stage. Given the limited financial history and modest asset base, credit approval should be conditional on obtaining further information about cash flow projections, funding sources, and business plans to ensure ongoing viability.

2. Financial Strength:
   The balance sheet reflects a small but positive net asset position of £3,522 as of October 2023, dropped from £10,443 the previous year. No long-term liabilities are recorded, indicating a clean debt profile. However, the drop in current assets without a corresponding increase in liabilities may indicate cash outflows exceeding inflows. The company’s micro-entity status limits the detail available, but the financial position is fragile due to the low asset base and lack of liquidity buffer.

3. Cash Flow Assessment:
   Current assets have decreased by approximately 66% year-over-year, which raises concerns about liquidity. Absence of current liabilities suggests no immediate obligations, but also no working capital leverage. The micro-entity accounts do not include cash flow statements or profit and loss details, limiting cash flow insight. Monitoring cash generation and timing of income versus expenditure will be critical to assess ability to meet short-term commitments.

4. Monitoring Points:

• Track changes in current assets and any emerging liabilities in future filings.
• Monitor cash flow statements and profit & loss accounts when available to assess operational sustainability.
• Review management changes and strategic plans to understand financial stewardship and growth prospects.
• Watch for any upcoming funding injections or grants that support liquidity.
• Keep an eye on director stability and governance given the recent director turnover in late 2024.