CEB COACHING LTD

Executive Summary

CEB COACHING LTD maintains solvency with positive net assets and working capital but exhibits declining shareholders’ funds and asset base, indicating emerging financial strain. Immediate focus on cash flow management, cost control, and strategic financial planning is advised to improve financial stability and support sustainable growth.

CEB COACHING LTD - Analysis Report

Company Number: 13133817

Analysis Date: 2025-07-20 11:05 UTC

Financial Health Assessment Report for CEB COACHING LTD

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1. Financial Health Score: C

Explanation:
The company currently exhibits a modest financial condition typical of a micro-entity in early development stages. While it has positive shareholders’ funds and net current assets in the latest reporting period, these have noticeably declined compared to prior years. This suggests some financial strain or contraction. The score "C" reflects a cautious outlook: the company is solvent and operating but showing symptoms of financial stress that require attention to avoid deterioration.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	2022 (£)	2021 (£)	Interpretation
Fixed Assets	375	749	749	1,124	Declining asset base; possible asset disposals
Current Assets	4,856	7,687	7,687	1,075	Significant drop from prior years; cash/debtors reduced
Current Liabilities	3,282	3,840	3,840	2,642	Slight reduction; manageable short-term debts
Net Current Assets	1,574	3,847	3,847	-1,567	Positive working capital but decreasing trend
Total Assets Less Liabilities	1,949	4,596	4,596	-443	Equity has dropped, indicating retained earnings loss or withdrawals
Shareholders Funds	1,949	4,596	4,596	-443	Equity position improved from negative but weakened recently

Interpretation:

• Working Capital ("healthy cash flow") remains positive, indicating the company can currently meet short-term obligations without immediate liquidity concerns. However, the downward trend signals "symptoms of distress" in operational liquidity.
• Declining Fixed Assets may indicate asset sales or lack of reinvestment, which can affect long-term sustainability.
• Shareholders’ Equity decreased by over 50% year-on-year, suggesting reduced profitability or capital withdrawals.

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3. Diagnosis: Financial Condition Assessment

CEB COACHING LTD is a micro private limited company, established in 2021, operating in management consultancy (non-financial). Its financial "vital signs" suggest the company is solvent and maintaining positive net assets but is in the early phases of financial contraction. The sharp decline in net current assets and shareholders funds between 2023 and 2024 signals underlying issues such as reduced revenues, increased costs, or owner withdrawals affecting retained earnings.

The company’s balance sheet reflects a "healthy heart rate" in terms of positive net current assets, but the "symptoms" of weakened equity and shrinking asset base point to a need for operational or financial restructuring to avoid future liquidity or solvency problems.

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4. Recommendations for Financial Wellness Improvement

1. Enhance Cash Flow Management:
   • Closely monitor receivables and payables to maintain or improve working capital.
   • Consider negotiating better payment terms with clients and suppliers.
2. Cost Control and Revenue Growth:
   • Review operating expenses to identify savings.
   • Explore marketing or service diversification to boost revenue streams.
3. Capital Structure Review:
   • Evaluate the need for additional equity injection or external financing to strengthen the balance sheet if operational cash flows remain weak.
4. Asset Utilization:
   • Assess fixed assets for efficiency and consider reinvestment if necessary to support business growth.
5. Regular Financial Monitoring:
   • Implement monthly financial reviews to detect early signs of distress.
   • Use financial dashboards or KPIs to track liquidity, profitability, and solvency consistently.
6. Seek Professional Advice:
   • Engage with a financial advisor or business consultant to develop a tailored turnaround or growth strategy.

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