COACHED BY CLOUGH LIMITED

Executive Summary

COACHED BY CLOUGH LIMITED shows a sound financial base with strong liquidity and positive net assets typical for a start-up in the sports education sector. The company is financially healthy with no distress symptoms but should focus on sustaining cash flow and gradually building assets to support growth. Continued prudent financial management will be key to maintaining this positive trajectory.

COACHED BY CLOUGH LIMITED - Analysis Report

Company Number: 14786086

Analysis Date: 2025-07-20 13:42 UTC

Financial Health Assessment for COACHED BY CLOUGH LIMITED

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1. Financial Health Score: B

Explanation:
The company demonstrates a strong liquidity position with healthy working capital and net assets relative to its size and age. As a newly incorporated business (less than 1.5 years old), it has established a solid financial footing without debts exceeding short-term assets. However, it remains early in its lifecycle with limited operational history and minimal fixed assets, which suggests potential growth but some exposure to early-stage risks. Hence, a grade B reflects a generally healthy financial status with room for growth and stability improvements.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	1,618	Modest investment in long-term assets, typical for start-up
Current Assets (Cash)	43,646	Strong cash reserves indicating good liquidity
Current Liabilities	12,350	Moderate short-term obligations, manageable against cash
Net Current Assets (Working Capital)	31,296	Positive working capital signals ability to cover short-term debts comfortably
Net Assets (Equity)	32,914	Indicates positive net worth—company value exceeds liabilities
Share Capital	100	Nominal share capital reflecting start-up company structure
Profit and Loss Reserve	32,814	Retained earnings or reserves signify accumulated value
Number of Employees	1	Very small workforce typical of micro/small company
Company Age	~1 year	Early stage with limited financial history

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3. Diagnosis

• Liquidity & Cash Flow: The company’s "healthy cash flow" is evident from having £43,646 in cash against £12,350 current liabilities, suggesting no immediate financial distress. This liquidity "heartbeat" means the business can meet its short-term obligations with ease, a critical sign of financial wellness in early stages.

• Capital Structure: Net assets of £32,914 with minimal fixed assets and modest share capital point to a business primarily financed by owner equity and reserves. This "strong pulse" of equity reduces dependence on external debt, lowering financial risk.

• Operational Scale: With just one employee and minimal tangible assets, the company is in an early growth phase, likely focusing on service delivery (sports and recreation education) rather than asset-heavy operations. The small scale means flexibility but also vulnerability to market or operational shocks.

• Going Concern & Stability: The director’s statement confirms no material uncertainties about continuing operations, indicating confidence in the business's viability over the next 12 months.

• Risks and Symptoms: At this early stage, the company has no signs of financial distress such as negative net assets, overdue filings, or director disqualifications. The main "symptom" to monitor is the limited asset base and reliance on cash reserves, which need replenishment through profitable operations or additional capital infusion to sustain growth.

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4. Recommendations

• Monitor Cash Flow Regularly: Maintain a "healthy cash flow" by forecasting receipts and payments to avoid liquidity crunches as the business scales.

• Build Asset Base: Consider reinvesting profits into tangible or intangible assets (equipment, software, marketing) to support growth and operational efficiency.

• Diversify Revenue Streams: Explore expanding client base or service offerings within sports and recreation education to strengthen income stability.

• Maintain Compliance and Filing Discipline: Continue timely filing of accounts and confirmation statements to avoid penalties and maintain good standing.

• Plan for Growth Staffing: As operations expand, plan for gradual increase in employees to support business activities without overstretching finances.

• Consider External Advice: Engage with financial advisors or accountants for tax planning, optimizing capital structure, and strategic growth funding options.

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