PV PERFORMANCE GYM LTD

Executive Summary

PV PERFORMANCE GYM LTD is in a financially stable position for its first year, with strong liquidity and positive net assets indicating a healthy foundation. The business shows no signs of distress but is still in an early growth stage, requiring focused efforts to build revenue and manage costs carefully. With prudent financial management and strategic growth, the company is well-positioned for a positive outlook.

PV PERFORMANCE GYM LTD - Analysis Report

Company Number: 15222858

Analysis Date: 2025-07-29 19:12 UTC

Financial Health Assessment for PV PERFORMANCE GYM LTD

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1. Financial Health Score: B

Explanation:
PV PERFORMANCE GYM LTD demonstrates a solid start with positive net current assets and net equity in its first financial year, indicating a "healthy pulse" in terms of liquidity and solvency. Given its micro-entity status and early stage of operations, the company shows no immediate distress symptoms, though the scale and scope remain limited. The score reflects a stable but nascent financial condition, with room to grow and strengthen.

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2. Key Vital Signs

Metric	Value	Interpretation
Current Assets	£9,920	Sufficient short-term resources to cover immediate expenses.
Current Liabilities	£1,891	Low short-term obligations, manageable for the size.
Net Current Assets	£8,029	Positive working capital; "healthy cash flow buffer."
Net Assets (Equity)	£7,261	Positive shareholders' funds indicating net worth is intact.
Number of Employees	1	Very lean operation, low overheads but limited capacity.
Account Category	Micro	Simplified reporting; small scale business.
Liquidity Ratio (Current Ratio)	~5.25 (9,920/1,891)	Strong liquidity, well above 1, indicating ability to meet short-term debts.

Interpretation:
The company’s balance sheet shows a robust liquidity position with current assets far exceeding current liabilities, suggesting no immediate cash flow stress. The positive net assets indicate the business is solvent and has a positive equity base, which is a good sign for creditors and investors alike.

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3. Diagnosis

PV PERFORMANCE GYM LTD is in the early stages of its lifecycle (incorporated Oct 2023) and functioning within the fitness facilities industry (SIC 93130). The financial "vitals" show the company is in a stable launching phase, with no signs of financial distress or over-leverage. The minimal liabilities and positive net assets resemble a healthy "heartbeat" for a startup.

The company operates with a lean structure (1 employee) and is majority-controlled by Chester Le Street United Academy Limited, which provides governance stability but also means external control is strong.

However, as a new enterprise, the company’s financial data is limited, and the absence of turnover or profit figures (common for a micro-entity’s first year) means we cannot yet assess profitability or cash generation. The business is in a preparatory phase and has not shown symptoms of distress such as negative working capital, high debt, or equity erosion.

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4. Recommendations

• Cash Flow Monitoring: Continue to maintain a healthy cash flow cycle to ensure operational expenses and any ramp-up costs are covered without strain. As the business grows, cash flow is the lifeblood that must remain strong.
• Build Revenue Streams: Focus on accelerating client acquisition and membership growth to generate consistent revenue, moving beyond the initial setup phase.
• Cost Management: Keep overheads low and staff levels aligned with business volume to avoid unnecessary fixed costs.
• Financial Reporting: Although exempt from audit, consider periodic internal reviews and budgeting to track financial health proactively.
• Governance and Controls: Ensure clear communication and alignment with the controlling entity (Chester Le Street United Academy Limited) to leverage strategic support.
• Plan for Growth: As the company expands, prepare for moving beyond micro-entity status, which will require more detailed financial reporting and potentially audited accounts.
• Contingency Planning: Build some financial reserves or access to credit to buffer against unexpected downturns or investment requirements.

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