Company Number: 13648463

Analysis Date: 2025-07-20 13:00 UTC

1. Risk Rating: LOW

Justification: ProudFit Ltd demonstrates a positive net asset position with net assets increasing from £319,247 in 2022 to £337,991 in 2023. The company shows improvement in current assets and maintains positive net current assets in 2023, indicating reasonable short-term liquidity. There are no overdue filings or indications of regulatory non-compliance. The company operates within a low-risk industry classification (sports and fitness facilities) and has a stable shareholder structure.

2. Key Concerns:

• Zero Employees: The company reported zero employees on average for 2022 and 2023, which raises questions about operational capacity and sustainability given the nature of the business (sports activities and fitness facilities).
• Declining Fixed Assets: Fixed assets decreased from £356,181 in 2022 to £319,178 in 2023. While not alarming alone, this could indicate asset disposals or lack of reinvestment.
• Recent Director Changes: Two new directors were appointed quite recently (October 2024), after the latest financial year-end. This may signal upcoming strategic or operational changes that require monitoring.

3. Positive Indicators:

• Strong Net Asset Position: Net assets increased year-over-year, showing growth and a stable equity base.
• Positive Net Current Assets: The company moved from a negative net current asset position in 2022 to a positive one in 2023, improving short-term liquidity.
• Compliance with Filings: All statutory filings, including accounts and confirmation statements, are up to date with no overdue status.
• Share Capital and Control Transparency: Share capital and ownership details are clear, with two significant controllers holding between 25-50% shares each, indicating balanced control.

4. Due Diligence Notes:

• Operational Model Verification: Investigate how the company operates with no employees reported—are services outsourced, or is the business model asset-driven?
• Asset Composition and Valuation: Review fixed asset details to understand the nature, valuation methods, and reason for the decrease.
• Impact of New Directors: Assess the strategic intentions and backgrounds of the recently appointed directors to understand potential business direction changes.
• Cash Flow Analysis: Obtain detailed cash flow statements or management accounts to verify liquidity beyond balance sheet figures.
• Revenue and Profitability: Seek additional financial performance indicators, as micro-entity accounts provide limited insight into operational profitability.