Company Number: 13248986

Analysis Date: 2025-07-29 14:16 UTC

1. Risk Rating: MEDIUM
   The company demonstrates positive net assets and modest working capital, but the financial scale is very small with minimal capital and fluctuating liquidity. Given the micro-entity status and limited operational scale, there is moderate risk regarding financial resilience.

2. Key Concerns:

• Low Capitalization: Share capital is only £1.00, indicating very limited equity buffer.
• Working Capital Fluctuations: Net current assets swung from negative in prior years to a small positive £281 in 2024, implying tight liquidity management.
• Declining Total Net Assets: Net assets decreased from £4,380 in 2023 to £3,032 in 2024, suggesting potential erosion of financial stability or accumulated losses.

3. Positive Indicators:

• Current Filing Status: Accounts and confirmation statements are up to date with no overdue filings, suggesting good regulatory compliance.
• Consistent Operations: The company has maintained an active status since incorporation in 2021 with a single director engaged in the fitness industry, aligned with business activities.
• Positive Net Assets: Despite small scale, the company remains solvent on a balance sheet basis with net assets above zero.

4. Due Diligence Notes:

• Verify the nature and frequency of creditors given the significant current liabilities relative to assets; assess payment terms and any potential creditor pressure.
• Review profit and loss performance to understand causes for net asset decline and assess operational profitability or losses.
• Confirm cash flow sufficiency given the modest working capital and fixed asset base to ensure ongoing viability.
• Assess director’s capacity and potential related-party transactions due to the single director/directorship and micro-entity status.