Company Number: 13991562

Analysis Date: 2025-07-20 17:38 UTC

1. Risk Rating: LOW
   The company demonstrates positive net assets and net current assets, no overdue filings, and steady shareholder equity growth over two years. The absence of audit requirements under the micro-entity regime aligns with its size, and no adverse regulatory flags are evident.

2. Key Concerns:

• Reliance on a single director and majority shareholder (Julia De Lucchi) poses governance concentration risk.
• Current liabilities are relatively high compared to current assets, though net current assets remain positive; liquidity management should be monitored.
• Limited financial disclosure due to micro-entity status restricts insight into profitability and cash flow trends.

3. Positive Indicators:

• Net assets increased from £12,643 to £22,160 within two years, indicating capital retention and modest growth.
• Positive net current assets (£10,788) suggest the company can cover short-term liabilities.
• Compliance with filing deadlines (accounts and confirmation statements) reflects good regulatory standing.
• Employment growth from 5 to 6 staff suggests operational scaling consistent with business activity in sports club management.

4. Due Diligence Notes:

• Verify cash flow sufficiency and working capital trends beyond balance sheet snapshots to assess short-term liquidity robustness.
• Review director’s strategic plans and any related-party transactions given director’s sole ownership and control.
• Investigate the nature and terms of longer-term creditors (£10,473) to understand potential solvency impact.
• Confirm absence of contingent liabilities or off-balance sheet obligations not visible in micro-entity accounts.
• Obtain any available management accounts or forecasts to evaluate operational sustainability and growth trajectory.