Company Number: 15334324

Analysis Date: 2025-07-19 12:45 UTC

1. Risk Rating: LOW
   Soul Padel Ltd shows strong liquidity and positive net asset position in its first financial period, with no overdue filings or evident governance irregularities. The company appears solvent with substantial cash reserves relative to current liabilities.

2. Key Concerns:

• Early Stage Company: Incorporated in December 2023, the company’s limited operating history means financial stability and operational sustainability are not yet proven.
• Intercompany Loan Exposure: £40,221 of current liabilities is owed to a related party (Black 29 Holdings Ltd), which may indicate dependency on intra-group financing.
• Negative Profit and Loss Reserve: The P&L account shows an accumulated deficit (-£219,388), reflecting initial expenses or losses typical of a startup phase; this warrants monitoring as future profitability is untested.

3. Positive Indicators:

• Strong Liquidity Position: Cash holdings of £746,018 far exceed current liabilities of £66,838, providing comfortable coverage for short-term obligations.
• Net Assets and Shareholders’ Funds: Net assets stand at £780,573 with shareholders’ funds of nearly £1m (including a significant share premium), indicating robust equity backing.
• Compliance and Governance: No overdue accounts or confirmation statements; multiple directors currently appointed with no disqualifications noted; suggests sound regulatory compliance.
• Clear Accounting Policies: The company applies standard accounting policies under FRS 102 for small entities and has opted for exemption from audit as permitted, consistent with size.

4. Due Diligence Notes:

• Review the nature and terms of the intercompany loan to assess risk of related party dependence or potential repayment issues.
• Obtain management forecasts and business plans to evaluate operational sustainability and path to profitability beyond the startup phase.
• Confirm the company's revenue generation and contract pipeline given the SIC codes spanning sports facilities operation, licensed restaurants, and retail sports goods.
• Monitor director changes, particularly noting the resignation of one director within the first year, to understand governance stability.
• Verify that the company’s exemption from audit remains appropriate as it grows and ensure accuracy of unaudited financials.