Company Number: 13028390

Analysis Date: 2025-07-29 13:15 UTC

1. Risk Rating: MEDIUM
   The company shows a decline in net assets and current assets over recent years, which may indicate weakening financial strength. However, it is not yet insolvent and maintains positive net current assets, suggesting it can meet short-term obligations. The small scale and limited employee base also pose operational risks.

2. Key Concerns:

• Declining Net Assets: Shareholders’ funds have decreased from £8,514 (2023) to £3,898 (2024), a significant reduction that may reflect operational losses or asset disposals.
• Reduced Liquidity: Current assets dropped sharply from £9,214 (2023) to £3,655 (2024), though current liabilities also decreased. The smaller working capital buffer could stress cash flow.
• Minimal Scale and Resources: Being a micro-entity with only one employee and nominal share capital (£2.00), the company may face challenges in scaling operations or withstanding financial shocks.

3. Positive Indicators:

• Current Liabilities Under Control: The company’s current liabilities have decreased significantly (from £2,325 in 2023 to £570 in 2024), improving short-term solvency.
• No Overdue Filings: Both accounts and confirmation statement filings are up to date, indicating regulatory compliance and governance discipline.
• Positive Net Current Assets: Despite reductions, net current assets remain positive at £3,085, supporting operational liquidity.

4. Due Diligence Notes:

• Review the detailed profit and loss account (not included in current filings) to understand the drivers behind the decline in net assets and current assets.
• Investigate the nature of fixed asset disposals or impairments, given the reduction from £1,625 to £813.
• Confirm the company's cash flow position and any reliance on director loans or external funding.
• Assess the business model and client base within the sports and recreation education sector to evaluate sustainability given the small workforce.
• Verify no undisclosed contingent liabilities or pending legal/regulatory issues that could impact financial stability.