PHOENIX LEGENDS GYM LTD

Executive Summary

Phoenix Legends Gym Ltd is a micro-entity in its first year with a negative net asset position and no equity capital. Its financial position and liquidity are weak, with current liabilities exceeding current assets, raising concerns about its ability to service debt. Credit approval is not recommended until the company demonstrates improved financial stability and cash flow generation.

PHOENIX LEGENDS GYM LTD - Analysis Report

Company Number: 14879730

Analysis Date: 2025-07-20 16:16 UTC

1. Credit Opinion: DECLINE
   Phoenix Legends Gym Ltd is a newly incorporated private company limited by guarantee with no share capital. The latest financials show net current liabilities of £384 and negative net assets of the same amount, indicating an early-stage loss position and weak balance sheet. The absence of equity capital and a negative working capital position raise concerns over the company’s ability to meet short-term obligations. Given its micro-entity size and limited operating history (just over one year), there is insufficient evidence of stable cash flows or profitability to support credit extension at this time.

2. Financial Strength:
   The company’s balance sheet is currently weak. Total liabilities within one year exceed current assets by £384, resulting in negative net assets and shareholders’ funds. The company operates with minimal capital resources as it is limited by guarantee, which limits members’ liability but provides no share capital buffer. The absence of fixed assets or reported tangible resources limits collateral value. The small scale (average 3 employees) and micro-entity classification also limit financial flexibility.

3. Cash Flow Assessment:
   No detailed cash flow statements are available, but the negative net working capital position suggests potential liquidity constraints. With current liabilities exceeding current assets, the company may face difficulties in servicing short-term debts without external cash injections or improved operating cash flow. The company’s early stage of operation and lack of accumulated reserves further exacerbate liquidity risk.

4. Monitoring Points:

• Future profitability and movement from negative to positive net assets
• Cash flow generation and ability to build working capital buffers
• Timely filing of next annual accounts and confirmation statement
• Any changes in control or financial support from members or parent entities
• Growth in revenue and evidence of sustainable operations in the fitness/sports sector