Company Number: 14224901

Analysis Date: 2025-07-20 12:22 UTC

1. Credit Opinion: CONDITIONAL APPROVAL. One Personal Training Limited is a young private limited company operating in the fitness facilities sector, with active trading and no overdue filings. However, the company shows weak liquidity and working capital positions, with net current liabilities worsening to £75,443 as at 30 June 2024 (from £15,247 the prior year). The significant director and related party loans (exceeding £120k combined) indicate reliance on shareholder funding to meet obligations, which raises concerns about cash flow sustainability. The company’s ability to service new or increased credit facilities depends on improving cash flow and reducing short-term creditor pressures. Approval should be conditional on monitoring cash flow improvements and limiting exposure until liquidity strengthens.

2. Financial Strength: The company has increased its net assets substantially to £49,850 from £5,279 the prior year, reflecting retained earnings growth. Fixed assets are substantial (£162,899 net book value), mainly comprising plant and machinery, which supports operational capacity. However, the balance sheet shows net current liabilities of £75,443 and long-term creditors of £26,028, illustrating a leveraged position with heavy short-term creditor commitments. The director loans and related party balances are material and pose risk if operational cash generation falters. Overall, the company is in a fragile financial position with improving equity but ongoing reliance on shareholder funding.

3. Cash Flow Assessment: Cash at bank increased to £29,945 from £9,274, which is a positive sign, but still modest relative to current liabilities of £168,067. Trade debtors remain steady around £43,580, indicating stable receivables. However, working capital remains negative, and the large creditor balance (especially other creditors £121,113) suggests pressure on liquidity. Director and related party loans provide a buffer but are not long-term solutions. The 10% interest charged on these loans adds to financial expenses, potentially impacting profitability and cash flow if not managed. The overall cash flow position is constrained and requires careful monitoring.

4. Monitoring Points:

• Liquidity ratios (current ratio and cash ratio) to assess improvements in working capital.
• Timely collection of trade debtors and management of creditor terms to reduce net current liabilities.
• Level and servicing of director and related party loans, including interest payments and repayment plans.
• Operating cash flow trends in subsequent periods to confirm ability to meet short-term obligations.
• Profitability and retained earnings growth to build internal equity and reduce reliance on external funding.
• Any changes in management or ownership control that might affect financial stewardship.