STRONGHOLD KRAV MAGA ACADEMY LTD

Executive Summary

STRONGHOLD KRAV MAGA ACADEMY LTD, a newly incorporated micro-entity, exhibits a high-risk financial profile with significant net liabilities and no current assets to cover short-term debts. While statutory filings are up to date and governance appears transparent, the company's solvency and liquidity position raise serious concerns requiring further investigation into its liabilities, cash flow, and operational viability.

STRONGHOLD KRAV MAGA ACADEMY LTD - Analysis Report

Company Number: SC785959

Analysis Date: 2025-07-29 14:46 UTC

1. Risk Rating: HIGH
   The company displays a highly concerning financial position with negative net assets and liabilities exceeding assets by £83,750 within less than a year of incorporation. Such a balance sheet implies insolvency risk and inability to meet obligations without additional capital injection.

2. Key Concerns:

• Negative Net Assets: The micro-entity accounts show total net liabilities of £83,750, indicating the company’s debts surpass its assets significantly.
• High Current Liabilities vs. Zero Current Assets: The balance sheet lists current liabilities of £16,250 but no current assets, suggesting liquidity issues and inability to cover short-term debts.
• Recent Incorporation and Limited Financial History: Incorporated in October 2023, the company has less than a full year of trading history, limiting ability to assess operational stability or track record.

3. Positive Indicators:

• No Overdue Filings: The company has filed accounts and confirmation statements timely, indicating compliance with statutory requirements.
• Clearly Identified Directors and PSCs: The governance structure is transparent with two directors holding significant control, potentially allowing for decisive management.
• Low Employee Count: With only two employees, the company’s cost base may be relatively low, which could be manageable if revenue generation improves.

4. Due Diligence Notes:

• Investigate Nature and Terms of Liabilities: Understanding the composition of the £68,750 long-term creditors and £16,250 current liabilities is critical to assess repayment obligations and refinancing risk.
• Review Cash Flow Projections and Funding Plans: Given the negative net assets and zero current assets, inquire about working capital funding sources and cash flow forecasts.
• Assess Business Model and Revenue Generation: Verify if the company has contracts, clients, or other revenue streams to support sustainable operations beyond initial losses.
• Director Background Checks: Confirm no prior disqualifications or adverse records for the directors, particularly as they hold significant control.