NEXT LEVEL RUGBY LIMITED

Executive Summary

NEXT LEVEL RUGBY LIMITED demonstrates critical financial weakness with deep negative net assets and poor liquidity. The company’s inability to cover current liabilities and heavy creditor obligations present a high credit risk. Without evidence of capital support or improved cash flow, credit facilities are not recommended at this stage.

NEXT LEVEL RUGBY LIMITED - Analysis Report

Company Number: 13650747

Analysis Date: 2025-07-29 17:40 UTC

1. Credit Opinion: DECLINE
   NEXT LEVEL RUGBY LIMITED exhibits significant financial distress with negative net assets worsening from -£208 in 2023 to -£25,179 in 2024, primarily driven by a long-term creditor liability of £29,737. The company’s current liabilities continue to exceed current assets by a substantial margin, indicating poor short-term liquidity and an inability to meet immediate obligations. Given the negative equity position, ongoing losses, and lack of tangible improvements in working capital or asset base, extending credit facilities would entail high risk without substantial mitigation or guarantees.

2. Financial Strength:
   The company’s balance sheet reveals weak financial health. Fixed assets have declined from £27,957 in 2021 to £11,427 in 2024, while net current liabilities remain persistently high (£6,869 negative in 2024). The presence of a creditor balance due after one year of £29,737 severely impacts net assets, dragging shareholder funds into deep negative territory (£-25,179). This represents erosion of capital and suggests the company is reliant on external funding or deferral of liabilities to sustain operations.

3. Cash Flow Assessment:
   With current assets of only £1,749 against current liabilities of £8,618, the company lacks sufficient liquidity to cover short-term debts. Negative net current assets and declining cash-related assets raise concerns about working capital management and cash generation capability. There is no indication of improved cash flow or reduction in creditor days. The small employee base (average 2) also implies a limited operational scale which may constrain revenue growth and cash inflows.

4. Monitoring Points:

• Watch for changes in creditor structure, particularly the long-term creditor balance of £29,737.
• Monitor net current assets trend and liquidity ratios quarterly.
• Track any equity injections or restructuring plans that could improve shareholders’ funds.
• Observe operational profitability indicators and cash flow from operations if available.
• Review director actions and any changes in management strategy aimed at financial recovery.