MY RISE LTD
Company number 08145358 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Risk Assessment: MY RISE LTD (08145358)
1. Risk Rating: HIGH
Justification: The company is technically insolvent with negative net assets of £3,837 (improved from £23,157 in 2024) and net current liabilities of £7,819. While the trajectory is improving, the company remains dependent on creditor forbearance and has exhibited persistent insolvency since 2021. The fitness facilities sector carries inherent operational volatility, and the minimal share capital of £2 provides no meaningful buffer.
2. Key Concerns
a) Persistent Technical Insolvency The company has carried negative net assets for five consecutive years (since FY2021). Net assets deteriorated from +£9,358 in 2020 to -£48,458 in 2021 (likely COVID-related), and while improving, remain negative at -£3,837. This raises questions about going concern viability and whether the company can meet obligations as they fall due without continued creditor support.
b) Director Loan Dynamics The FY2025 accounts show the director's loan of £17,063 (listed in FY2024) has been removed from current liabilities with no corresponding equity entry visible. This requires clarification—was it forgiven, converted to equity, or restructured? If forgiven, this may represent a one-off benefit rather than sustainable operational improvement. The net asset improvement of ~£19,320 is largely explained by this single item.
c) Tax Liabilities and Cash Flow Pressure New VAT arrears of £3,859 have appeared in FY2025 (nil in FY2024), alongside ongoing tax and social security liabilities of £8,261. A new bank overdraft/loan of £1,494 has also emerged. These suggest ongoing cash flow constraints despite the improved headline position.
3. Positive Indicators
a) Significant Balance Sheet Improvement Net liabilities reduced from -£23,157 to -£3,837, a £19,320 improvement. Net current liabilities improved from -£23,443 to -£7,819. This suggests either genuine operational recovery or effective balance sheet restructuring.
b) Cash Position Strengthening Cash at bank increased from £2,837 to £6,501, more than doubling. This provides a modest liquidity buffer and may indicate improved trading conditions.
c) Long-term Debt Eliminated The £4,557 bank loan due after one year (FY2024) has been fully repaid, removing a fixed obligation and reducing future cash flow pressure.
d) Employee Growth Average employee count increased from 5 to 7, suggesting operational expansion rather than contraction—a positive signal for a fitness business.
e) Filing Compliance Accounts and confirmation statements are filed on time. The company is not in liquidation or administration, and there are no overdue filings.
4. Due Diligence Notes
| Item | Investigation Required |
|---|---|
| Director Loan Treatment | Clarify whether the £17,063 loan was forgiven, written off, or converted. If forgiven, understand the tax implications and whether this constitutes a one-off benefit that cannot be replicated. |
| Going Concern Basis | The accounts are prepared on a going concern basis despite negative net assets. Request the director's assessment of going concern viability and any letters of support from creditors or shareholders. |
| VAT Arrears | Understand why VAT has accrued to £3,859—is this a timing issue or indicative of underlying cash flow difficulties? Check for any HMRC enforcement action or payment plans. |
| Related Party Transactions | With two PSCs (Jonathan Hall and Matthew Nicholson) but only one director listed, clarify the relationship between shareholders and whether further financial support exists or is contemplated. |
| Trading Performance | The P&L account has not been delivered to the Registrar (permitted for small companies). Request full profit and loss information to assess whether the operational improvement is sustainable. |
| COVID Recovery Trajectory | The dramatic deterioration from FY2020 to FY2021 warrants investigation into whether the business model has been adapted post-pandemic or remains vulnerable to future disruptions. |
| Lease Commitments | As a fitness facility operator, the company likely has lease obligations for premises and equipment. These may not be fully reflected on the balance sheet under FRS 102 Section 1A. |
| Previous Name Changes | Two name changes (2017 and 2020) may reflect strategic pivots or rebranding following financial difficulties. Understand the rationale and whether these coincide with changes in business model. |