SHREWD SPORTS LIMITED

Executive Summary

Shrewd Sports Limited maintains a modest but positive net asset position with stable equity and working capital, though liquidity has tightened recently. The company operates in a high-risk sector and relies somewhat on director funding, warranting a cautious credit approach. Conditional approval is recommended with close monitoring of liquidity and director advances to mitigate potential cash flow risks.

SHREWD SPORTS LIMITED - Analysis Report

Company Number: NI677913

Analysis Date: 2025-07-29 20:06 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Shrewd Sports Limited demonstrates a stable net asset position and positive working capital as of the latest accounts, indicating an ability to meet short-term liabilities. However, the company is categorized as a micro-entity with modest asset and equity levels, and the directors have significant advances (negative director loans) which may indicate reliance on director funding. The sector—gambling and betting activities—can be volatile and sensitive to regulatory and economic changes, suggesting some business risk. Credit approval is recommended with conditions including regular monitoring of liquidity and director advances, and possible covenants to limit director loans or require timely repayment.

2. Financial Strength:
   The balance sheet shows net assets of £8,404 as at 31 March 2024, down slightly from £9,122 in the prior year. Fixed assets increased from £1,364 to £6,443, indicating some capital investment. Current assets stand at £10,518 against current liabilities of £7,857, resulting in positive net current assets of £2,661, though this is a reduction from prior years. Shareholders’ funds align with net assets, confirming no significant off-balance sheet liabilities. Overall, the company exhibits modest financial strength with a sound equity base but a decreasing working capital buffer.

3. Cash Flow Assessment:
   Current liabilities have increased significantly to £7,857 from a previously unreported figure, reducing net current assets from £8,408 to £2,661. This reduction in short-term liquidity is a cautionary signal and suggests tighter cash flow management is needed. The directors have provided advances/credits to the company totaling -£7,589 (a liability from the company’s perspective), indicating external funding to support operations. The company’s ability to generate positive operating cash flow is unconfirmed due to lack of detailed P&L and cash flow statement data, but the working capital decline and director loans suggest cash flow constraints.

4. Monitoring Points:

• Track changes in net current assets and liquidity ratios quarterly to detect any worsening cash flow issues.
• Monitor director advances and ensure they do not escalate or remain outstanding for extended periods.
• Watch for changes in regulatory or market conditions impacting the gambling sector.
• Review any future capital expenditures or debt increases that may strain financial resources.
• Confirm timely filing of accounts and compliance with statutory obligations to mitigate governance risk.