Company Number: 13791737

Analysis Date: 2025-07-20 18:07 UTC

1. Risk Rating: HIGH
   The company exhibits a very low net asset base (£29 as of 31 Dec 2023) barely exceeding current liabilities, with a history of net liabilities and negative shareholder funds in prior years. The elimination of the £6,000 long-term bank loan from 2022 to 2023 is unexplained in the accounts and may indicate repayment or restructuring, but cash reserves remain minimal (£1,110). The financial scale and reserves are insufficient to provide a comfortable solvency margin.

2. Key Concerns:

• Minimal Working Capital and Liquidity: Net current assets are only £29, with cash balances around £1,100, an extremely tight liquidity position for ongoing operations.
• Negative Equity History: The company was in a significantly negative net asset position in 2021 and 2022, indicating past accumulated losses and weak capitalisation.
• Debt Reduction Without Disclosure: The disappearance of the £6,000 bank loan from 2022 to 2023 lacks explicit disclosure, raising questions about how this liability was settled and whether there is any contingent or off-balance sheet exposure.

3. Positive Indicators:

• No Overdue Filings: Accounts and confirmation statements are up to date, indicating compliance with statutory filing obligations.
• Active Trading Status: The company is active with an operational website and social media presence, suggesting ongoing business activities in the sports goods manufacturing sector.
• Strong Shareholder Control and Stability: The principal director, Mr Russell Field, holds majority control and remains actively involved, which may provide continuity and committed leadership.

4. Due Diligence Notes:

• Obtain detailed explanations and supporting documents regarding the repayment or write-off of the £6,000 bank loan reported in 2022 but absent in 2023 accounts.
• Review cash flow statements and any management commentary to assess the company’s ability to generate sufficient liquidity to meet short-term obligations.
• Investigate the company’s profitability trends and business plan to understand the prospects for returning to positive equity and sustainable operations.
• Verify any contingent liabilities or off-balance sheet financing that may impact solvency position.
• Confirm whether the company’s single employee (average one reported) is sufficient for current operational needs or if outsourcing or subcontracting is used.