CLARENDON COACHING LIMITED

Executive Summary

Clarendon Coaching Limited displays robust financial health characterized by strong liquidity, positive net assets growth, and solid compliance with statutory requirements. The company operates efficiently as a micro-entity consultancy with prudent management of liabilities and resources. Continued focus on cash flow management and strategic growth will support sustained financial wellness.

CLARENDON COACHING LIMITED - Analysis Report

Company Number: 13887663

Analysis Date: 2025-07-20 17:06 UTC

Financial Health Assessment: CLARENDON COACHING LIMITED (Year Ending 31 March 2025)

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1. Financial Health Score: A

Explanation:
Clarendon Coaching Limited exhibits a strong financial position for a micro-entity with consistent positive net current assets, growing shareholder equity, and prudent management of liabilities. The company shows financial "vital signs" of stability with no fixed assets (typical for an advisory/consultancy firm), healthy liquidity, and no indications of distress or overleveraging. This reflects a "healthy cash flow and balance sheet" profile appropriate for its size and sector.

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2. Key Vital Signs

Metric	2025 Value (£)	Interpretation
Fixed Assets	0	No long-term assets; typical for service-based consultancy without property/equipment holdings.
Current Assets	27,320	Represents cash or receivables; sufficient to cover short-term obligations comfortably.
Current Liabilities	5,807	Short-term debts; relatively low compared to current assets, indicating good liquidity.
Net Current Assets (Working Capital)	21,513	Positive and stable, showing the company can meet its short-term commitments reliably.
Net Assets (Shareholders Funds)	21,513	Equity has increased steadily from £12,525 in 2022 to £21,513 in 2025; shows retained earnings or capital injections.
Average Number of Employees	1	Micro-entity with minimal staff; typical for a consultancy run by a sole director.
Overdue Filings	No	Compliance with filing deadlines indicates good governance and operational discipline.

Interpretation:

• The company’s liquidity position is strong, with a current ratio (current assets/current liabilities) of approximately 4.7 in 2025, which is well above the minimum threshold of 1. This suggests no immediate risk of cash flow problems—a "healthy pulse" in financial terms.
• The steady increase in shareholders’ funds reflects either retained profits or capital contributions, indicating the business is "building reserves" and sustaining growth.
• Absence of fixed assets suggests minimal capital expenditure, consistent with its service-based nature.
• The company operates with a lean structure (1 employee/director), reducing fixed overheads.

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3. Diagnosis: Overall Financial Condition

Clarendon Coaching Limited is in excellent financial health for a micro-entity consultancy business. The working capital levels are robust, indicating the company can meet its short-term obligations comfortably. The steady increase in net assets suggests profitability or owner investment, and no signs of financial distress or liquidity strain are evident. The director is also the sole shareholder and secretary, reflecting centralized control but also potential dependency on a single individual, which is typical for small consulting firms.

There are no symptoms of financial distress such as:

• Negative working capital or recurring overdrafts
• Increasing liabilities outpacing assets
• Overdue statutory filings or penalties

The company’s financial "vital signs" show a stable and sustainable operating position, with a clean balance sheet and solid equity base. This "healthy heart" of finances supports ongoing operations and potential future growth.

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4. Recommendations: Actions to Enhance Financial Wellness

• Maintain Cash Flow Discipline: Continue to monitor receivables and payables to preserve the strong liquidity position. Avoid overcommitting to liabilities that might strain working capital.
• Consider Diversifying Assets: While fixed assets are not essential for service firms, small investments in technology or software tools could improve productivity and market competitiveness.
• Plan for Succession & Risk: With the company heavily reliant on a single director/employee, consider contingency planning to mitigate risks related to key-person dependency.
• Explore Growth Opportunities: Utilize the strong equity base to cautiously expand service offerings or marketing to increase turnover and profitability.
• Regular Financial Review: Continue timely filings and financial reviews to ensure compliance and detect any early "symptoms" of financial stress.
• Professional Advice: Engage periodically with financial advisors to optimize tax planning and cash management strategies as the business grows.

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