SPRINTERS EDGE LTD

Executive Summary

Sprinters Edge Ltd is a newly formed micro-entity with a very limited operating history and negative working capital, indicating potential liquidity risks. While it demonstrates compliance with filing requirements and straightforward ownership, the company’s minimal financial resources and short track record present significant uncertainties regarding its operational sustainability. Further investigation into its funding and business model is recommended before considering investment.

SPRINTERS EDGE LTD - Analysis Report

Company Number: 15265215

Analysis Date: 2025-07-29 13:14 UTC

1. Risk Rating: HIGH
   The company exhibits a high risk profile at this early stage due primarily to negative net current assets, limited operational history, and minimal financial resources.

2. Key Concerns:

• Negative Working Capital: Current liabilities (£25,604) exceed current assets (£13,768) by £11,836, indicating potential liquidity constraints to meet short-term obligations.
• Very Early Stage and Limited Financial History: Incorporated in November 2023, with first accounts covering less than five months. Lack of operating history limits ability to assess operational stability or profitability.
• Minimal Equity Base and Small Asset Size: Net assets of only £2,394 and fixed assets of £14,230 suggest limited financial buffer to absorb losses or fund growth.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statement are filed on time, indicating regulatory compliance and good governance in this respect.
• Clear Ownership and Control: Single director and 75-100% shareholder, simplifying decision-making and accountability.
• Micro-Entity Status: Low complexity and filing requirements reduce administrative burden.

4. Due Diligence Notes:

• Investigate source and sustainability of working capital financing given negative net current assets.
• Understand the nature of fixed assets (£14,230) to assess if these are productive assets or initial investments.
• Review business plan and cash flow projections as the company moves beyond startup phase to evaluate operational viability.
• Monitor director background and any associated ventures for potential reputational or governance risks.
• Confirm whether ongoing funding from shareholders or external sources is secured to support liquidity.