Company Number: 14355095

Analysis Date: 2025-07-20 12:34 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, demonstrated by persistent negative net current assets and shareholders' funds, indicating an inability to fully meet short-term obligations without external support.

2. Key Concerns:

• Negative working capital: The net current liabilities increased from £17,644 in 2023 to £25,216 in 2024, reflecting worsening liquidity.
• Negative shareholders' funds: The company’s equity is deeply negative at £16,551 as of 2024, down from £5,993 in 2023, suggesting accumulated losses and potential insolvency risk.
• Reliance on director support: The directors acknowledge the company made a loss and is dependent on their continued financial support to remain a going concern, which may not be sustainable long-term.

3. Positive Indicators:

• Timely filing compliance: The company has no overdue accounts or confirmation statements, indicating regulatory compliance and good governance in filings.
• Tangible fixed assets: The company holds tangible assets (£8,765 net book value) which may provide some collateral value, although modest relative to liabilities.
• Operating in a defined niche (SIC 93110): The business operates in sports facilities, a sector with potential for stable income if managed well.

4. Due Diligence Notes:

• Investigate the nature and terms of the director support noted in the going concern statement, including any formal or informal financial arrangements.
• Review the company’s cash flow forecasts and business plan for sustainability and path to profitability given current losses and negative equity.
• Examine creditor composition and payment history to assess risk of enforcement or legal action due to outstanding liabilities.
• Consider the impact of the director resignation in January 2024 and any governance or operational changes resulting.
• Verify the accuracy and completeness of the financial data, noting that accounts are unaudited.