Company Number: NI689852

Analysis Date: 2025-07-29 20:50 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Paragon Team Training Ltd is an active micro-entity with recently improved equity, moving from negative net assets (£-21) in 2023 to a small positive net asset position (£139) in 2024. However, the company exhibits weak liquidity with net current liabilities of £7,650, indicating ongoing short-term funding pressure. The business is in an early stage (incorporated 2022) and operates in the fitness facilities sector, which can be volatile but also has growth potential. The sole director and 75-100% shareholder, Mr. David Thomas Elwood, shows stable management control. Given the thin equity and working capital deficit, credit facilities should be granted on a conditional basis with restrictions and regular monitoring of cash flow and working capital.

2. Financial Strength:
   The balance sheet is modest but improving. Fixed assets have slightly decreased from £9,837 to £8,290, while current assets have increased from nil to £2,085. Current liabilities remain high at £9,735, though slightly reduced from £9,858. The company’s net assets have turned positive, albeit marginally (£139), reflecting a very weak capital base. There is a small portion of long-term creditors (£484) and accruals (£17), but overall the leverage is low due to the company’s size. The financial position suggests limited buffer to absorb shocks, highlighting fragile financial strength.

3. Cash Flow Assessment:
   The company’s net current liabilities of £7,650 indicate a working capital deficit, which may constrain liquidity and operational flexibility. The increase in current assets is a positive sign, but it is not sufficient to cover short-term obligations. The average number of employees grew from 1 to 2, suggesting some business expansion. However, no detailed cash flow statement is provided; the negative working capital and minimal equity imply reliance on external funding or director support to meet short-term commitments. Careful cash flow management will be essential.

4. Monitoring Points:

• Quarterly review of cash flow and working capital to ensure obligations can be met.
• Watch for further improvement or deterioration in net assets and liquidity ratios.
• Monitor any changes in the director’s involvement or control that could impact governance.
• Keep track of sector trends in fitness facilities post-pandemic for business resilience.
• Confirm timely filing of future accounts and confirmation statements to assess ongoing compliance.