BALANCED FC COACHING LTD

Executive Summary

Balanced FC Coaching Ltd demonstrates moderate financial health with positive net assets and no overdue filings, indicating compliance and operational viability at a micro-entity scale. However, recent governance changes, provisions impacting net assets, and multiple name changes suggest areas requiring further clarification to fully assess business stability and risk exposure. Further due diligence on contingent liabilities and management continuity is advised before investment consideration.

BALANCED FC COACHING LTD - Analysis Report

Company Number: 13465527

Analysis Date: 2025-07-20 16:50 UTC

1. Risk Rating: MEDIUM
   Justification: The company shows positive net assets and working capital, indicating solvency and some operational stability. However, the micro-entity status and relatively low asset base limit financial robustness. The presence of provisions and accruals reducing net assets, along with recent director turnover and company name changes, introduce some governance and continuity concerns.

2. Key Concerns:

• Provisions and Accruals Impact: The 2024 accounts show provisions (£586) and accruals/deferred income (£2,333) that significantly reduce net assets compared to the gross asset position, potentially indicating contingent liabilities or timing issues in revenue recognition.
• Frequent Name Changes: Two name changes within a year could reflect strategic repositioning or instability, which investors should understand fully.
• Director Turnover: Several director appointments and resignations in late 2023 raise questions about management continuity and governance stability.

3. Positive Indicators:

• Positive Net Assets and Working Capital: The company reported net assets of £5,022 and net current assets of £5,425 as of June 2024, indicating the ability to meet short-term liabilities.
• On-time Filing Compliance: Both accounts and confirmation statements are filed timely with no overdue reports, suggesting good regulatory compliance.
• Clear Ownership Structure: The main shareholder and controlling interests are clearly identified, including a significant individual controlling 75-100% of shares and voting rights, which can aid decision-making clarity.

4. Due Diligence Notes:

• Review detailed nature of provisions and accruals in the full accounts or notes to understand any contingent liabilities or deferred income recognition policies.
• Investigate reasons behind the recent name changes and director turnover to assess potential operational or strategic risks.
• Confirm cash flow sufficiency and sources, given the micro-entity scale and limited fixed assets.
• Consider obtaining management commentary or strategic plans to assess future sustainability and growth prospects in the sports and recreation education sector.