Company Number: 14224483

Analysis Date: 2025-07-29 20:42 UTC

1. Risk Rating: HIGH

Justification: Team Fitty App Limited demonstrates minimal net current assets (£22 as of 31 July 2024) with current liabilities nearly equal to current assets. Shareholders’ funds are negligible (£22), and the company operates with only one employee. The company is very new (incorporated July 2022) with limited financial history and is operating in a niche fitness sector, which may be highly competitive. These factors indicate a high risk of solvency and liquidity stress.

2. Key Concerns:

• Liquidity and Working Capital Risk: Current liabilities (£22,554) almost entirely offset current assets (£22,576), resulting in effectively zero net working capital, which may impair the company’s ability to meet short-term obligations.
• Limited Financial Cushion: Very low shareholders’ funds and net assets (£22) suggest minimal buffer against financial shocks or trading losses.
• Lack of Financial Transparency: The accounts are unaudited with no income statement filed (per small companies regime exemption), limiting visibility into profitability, revenue trends, and operational cash flow.

3. Positive Indicators:

• Timely Filings: Accounts and confirmation statements are up to date with no overdue filings, indicating regulatory compliance and governance diligence.
• Stable Director Ownership: Two directors with substantial shareholding and voting rights (each between 25-50%) aligned with company control, potentially indicating committed management.
• Cash Increase: Cash at bank increased from £7,273 in 2023 to £19,587 in 2024, suggesting some improvement in liquidity despite overall tight working capital.

4. Due Diligence Notes:

• Investigate the nature and timing of the £18,022 “other creditors” to assess payment terms and potential liquidity pressure.
• Request detailed management accounts or cash flow forecasts to understand operational sustainability and revenue generation.
• Clarify business model, customer base, and competitive positioning within the physical well-being sector (SIC 96040).
• Confirm whether any external financing or capital injections are planned or available to support growth or cover liabilities.
• Review director backgrounds further for experience in business scaling and financial management given the company’s nascent stage.