SHOREHAM BEACH PILATES LIMITED

Executive Summary

SHOREHAM BEACH PILATES LIMITED demonstrates operational continuity with regulatory compliance but faces liquidity challenges evidenced by negative net current assets and minimal net equity. While the company remains active in a stable sector with low employee count, the financial position warrants closer scrutiny of short-term obligations and asset management to assess sustainability risks adequately.

SHOREHAM BEACH PILATES LIMITED - Analysis Report

Company Number: 14193073

Analysis Date: 2025-07-20 18:38 UTC

1. Risk Rating: MEDIUM
   Justification: The company shows low net assets (£479) with current liabilities exceeding current assets, indicating short-term liquidity pressure. However, it remains active with no overdue filings and a stable small workforce, suggesting ongoing operations.

2. Key Concerns:

• Negative net current assets: Current liabilities (£22,007) substantially exceed current assets (£1,748), implying potential liquidity difficulties in meeting short-term obligations.
• Very low net assets and shareholders' funds (£479), which may restrict financial flexibility and resilience against unexpected expenses or downturns.
• Declining fixed assets from £13,003 in 2023 to £9,618 in 2024, possibly signaling asset disposals or reduced investment in business infrastructure.

3. Positive Indicators:

• The company is current with all statutory filings (accounts and confirmation statement), showing compliance with regulatory requirements.
• Maintains an active status with a consistent single employee, indicating operational continuity.
• The business operates in well-established service sectors (fitness facilities and other human health activities) which may provide steady demand.

4. Due Diligence Notes:

• Investigate the nature of the high current liabilities and reasons for negative net working capital; assess whether these are trade payables, accrued expenses, or loans.
• Review cash flow statements (if available) or bank statements to evaluate liquidity management and the company’s ability to generate cash.
• Clarify the reason behind the reduction in fixed assets to understand if it relates to asset sales or depreciation impacting operational capacity.
• Verify the impact, if any, of the recent company name change on business strategy or ownership structure.
• Confirm the director’s background (R Green) for any previous conduct issues or financial difficulties.