SMASH BADMINTON ACADEMY LIMITED

Executive Summary

SMASH BADMINTON ACADEMY LIMITED is a recently incorporated micro-entity with no assets and liabilities owed to directors exceeding £11k, resulting in negative net worth. The company currently lacks operational trading evidence, cash flow, and working capital, rendering it financially vulnerable and unable to support credit facilities. Credit approval is declined at this stage due to insufficient financial strength and uncertain repayment capability.

SMASH BADMINTON ACADEMY LIMITED - Analysis Report

Company Number: 14569750

Analysis Date: 2025-07-29 14:37 UTC

1. Credit Opinion: DECLINE. The company, SMASH BADMINTON ACADEMY LIMITED, incorporated in 2023, shows significant financial weakness with negative net assets of £11,135 as at 31 December 2023. The current liabilities exceed current assets by £11,235, and the entire negative net asset position corresponds to monies owed to the two directors. There is no evidence of trading assets or revenues, and no employees are recorded. The company appears to be in its start-up phase but has not generated any tangible financial strength or working capital. The directors have advanced funds, but this is insufficient to demonstrate ongoing operational viability or ability to service third-party credit. Given these factors, the risk of non-repayment or default is high.

2. Financial Strength: The balance sheet is weak with zero fixed or current assets and liabilities of £11,235 owed to directors. The company’s net assets and shareholders’ funds are negative £11,135, indicating insolvency from a technical accounting perspective. This suggests the company is relying entirely on director loans or advances to fund operations. No tangible assets or liquidity cushions exist to absorb financial stress. The micro-entity classification and lack of turnover data indicate a business at a nascent stage without proven financial footing.

3. Cash Flow Assessment: No current assets such as cash or debtors are reported, implying no liquid resources on hand. The entire current liability balance relates to amounts owed to directors, indicating the company relies on director funding rather than external financing or operational cash flow. There is no evidence of working capital or cash inflows from trading activities. The absence of employees and fixed assets further suggests minimal business activity and no immediate capacity to generate positive cash flow.

4. Monitoring Points:

• Track any future filings for revenue generation and profitability to assess improving financial health.
• Monitor changes in director loans and any attempts to convert these to equity or external funding.
• Watch for increases in current assets, especially cash or receivables, that would improve liquidity.
• Review any filings for subsequent periods to detect operational progress or further deterioration.
• Assess management actions for financial restructuring or new capital injections.