BUSINESS TRANSFORMATION COACHING COMPANY LTD

Executive Summary

Business Transformation Coaching Company Ltd is a micro-entity with improving financial metrics and positive net assets, indicating a stable but modest credit risk profile. The company’s liquidity and working capital are sufficient for its size, supported by a lean operating model. Approval for credit facilities is recommended with conservative limits and ongoing monitoring of key financial indicators.

BUSINESS TRANSFORMATION COACHING COMPANY LTD - Analysis Report

Company Number: 14160981

Analysis Date: 2025-07-29 18:02 UTC

1. Credit Opinion: APPROVE with caution. Business Transformation Coaching Company Ltd shows modest but stable financial growth and positive net assets. The company is a micro-entity operating in management consultancy, with a single employee, indicating a lean structure. The absence of audit requirements and limited financial disclosures typical of micro companies limit the depth of analysis. However, the consistent increase in net current assets and net equity from 2023 to 2024 suggests improving financial health. Given the small scale and limited liabilities, the risk is relatively low, but credit exposure should be conservative and monitored closely.

2. Financial Strength: The company’s balance sheet reflects a small but positive net asset base, increasing from £1,752 in 2023 to £2,828 in 2024. Current assets rose significantly by approximately 64% to £28,793, while current liabilities increased moderately to £23,035. The resulting net current assets of £5,758 provide a cushion for short-term obligations. No long-term liabilities are reported, and shareholders’ funds mirror net assets, consistent with a small, equity-financed entity. Accruals and deferred income have increased but remain manageable. Overall, the financial strength is minimal but improving, typical for a startup/small consultancy.

3. Cash Flow Assessment: Liquidity appears adequate, with current assets exceeding current liabilities, resulting in positive working capital. The increase in current assets indicates either improved cash balances or receivables, which supports operational liquidity. However, the absolute values are low, reflecting the company’s micro size. The average employee count of one suggests low overheads, likely supporting positive cash flow generation. Without detailed cash flow statements, the assessment relies on balance sheet liquidity, which currently indicates sufficient short-term cash availability to meet obligations.

4. Monitoring Points:

• Track continued growth in net current assets and net equity to ensure financial stability and ability to service credit lines.
• Monitor accruals and deferred income trends, as rising levels may indicate future revenue recognition issues or cash flow timing risks.
• Watch for any increase in liabilities or sudden deterioration in working capital, which could signal operational stress.
• Review annual accounts filings and confirmation statements timely to identify any changes in company status or financial position.
• Evaluate any changes in management or business strategy that may impact financial performance or risk profile.