Company Number: 14719200

Analysis Date: 2025-07-29 18:02 UTC

1. Risk Rating: HIGH

Justification: The company has negative net current assets of £82,644 indicating a liquidity shortfall, and minimal net assets (£2,414) relative to fixed assets. The business is newly incorporated (less than 1.5 years old), employs only one person (the director), and operates in a sector (fitness facilities) that can be capital intensive with uncertain cash flows. These factors combined signal elevated solvency and operational risks at this early stage.

2. Key Concerns:

• Liquidity risk: Current liabilities (£43,754) exceed current assets (negative £38,949), implying an inability to cover short-term obligations without additional financing.
• Operational scale and sustainability: Single employee (director) and micro-entity size restrict operational capacity and resilience.
• Limited financial transparency: Micro-entity filing regime exempts the company from providing profit and loss details or audit, limiting insight into profitability and cash flow.

3. Positive Indicators:

• Director control and continuity: The sole director, Lucy May Walton, owns 75-100% shares and voting rights, ensuring centralized decision-making and control.
• No overdue filings: Accounts and confirmation statements are filed on time, showing compliance with regulatory obligations.
• Fixed asset base: The company holds fixed assets of £86,058, which can support operational activities or be leveraged.

4. Due Diligence Notes:

• Investigate the composition and liquidity of current liabilities and whether any are overdue or at risk of enforcement.
• Review cash flow projections and capital raising plans to confirm ability to meet short-term liabilities.
• Assess business model viability and market positioning given the fitness industry's competitive landscape.
• Confirm absence of related party transactions or director loans that may impact financial stability.
• Monitor ongoing compliance with filing deadlines, governance, and any changes in director status.