Company Number: 14401950

Analysis Date: 2025-07-20 14:11 UTC

Financial Health Assessment for Coakley Greene Limited
As of Financial Year Ending 31 October 2023

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1. Financial Health Score: D

Explanation:
The company's financial health is currently weak. Key indicators show negative net assets and a working capital deficit, which are symptoms of financial distress. As a newly incorporated business, it is not uncommon to see early-stage losses, but the negative equity and current liabilities exceeding current assets present warning signs that require attention.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	20,820	Includes cash, debtors, and stock; relatively small. Cash balance is low (£4,550).
Current Liabilities	27,279	Short-term debts exceed current assets, indicating potential liquidity issues.
Net Current Assets (Working Capital)	-6,459	Negative working capital signals difficulty in meeting short-term obligations.
Net Assets (Shareholders’ Funds)	-6,459	Negative equity means liabilities exceed assets; company is "underwater."
Share Capital	100	Minimal initial capital invested.
Debtors	15,028	High receivables relative to cash, potential cash flow timing risk.
Stock	1,242	Inventory held; relatively low, typical for retail business.

Interpretation in Medical Terms:
The company exhibits symptoms akin to a patient with low blood pressure and weak pulse—working capital is negative, indicating strained liquidity ("healthy cash flow" is lacking). Negative net assets show a deficit in the company's "balance sheet strength," much like a weakened immune system that requires intervention.

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3. Diagnosis

Coakley Greene Limited is a recently established private limited company operating in the retail sale of fish and seafood products. Its financial records for its first full accounting period reveal that the business is experiencing initial losses, reflected in negative retained earnings and shareholders’ funds.

• Liquidity Stress: Negative working capital means the company may struggle to pay its immediate debts without additional cash inflows or financing. The low cash reserves heighten this risk.
• Solvency Concern: Negative net assets indicate that liabilities currently exceed assets, a critical symptom of financial distress. This could be due to startup costs, initial operating losses, or delayed revenues.
• Operational Stage: As a new company (incorporated in late 2022), early-stage losses are common, but continued negative equity without a clear path to profitability could threaten ongoing viability.
• Control and Governance: The single director and sole shareholder, Mrs. Annabelle Jane Denty, has full control, which simplifies decision-making but may limit access to additional capital or expertise.

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4. Recommendations: Prescription for Financial Wellness

1. Improve Liquidity and Cash Flow Management

   • Accelerate collection of outstanding receivables to boost cash on hand.
   • Negotiate extended payment terms with suppliers to ease short-term cash pressure.
   • Consider short-term financing options (e.g., overdraft, invoice factoring) to cover working capital gaps.

2. Capital Injection or Funding

   • Infuse additional equity capital to restore positive net assets and strengthen the balance sheet.
   • Explore external funding sources such as small business loans or grants tailored for retail or food businesses.

3. Cost Control and Profitability Focus

   • Tighten operational expenses to reduce losses and conserve cash.
   • Review pricing strategy and sales growth initiatives to enhance revenue streams.

4. Financial Reporting and Monitoring

   • Establish regular financial monitoring to detect symptoms of distress early.
   • Engage professional advice for cash flow forecasting and budgeting.

5. Strategic Planning

   • Develop a clear business plan targeting break-even and profitability within a defined timeframe.
   • Consider diversifying product range or sales channels to stabilize income.

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Summary:
Coakley Greene Limited shows early signs of financial stress with negative working capital and net assets, reflecting startup challenges in liquidity and solvency. Immediate steps to improve cash flow, strengthen the balance sheet through capital infusion, and focus on operational efficiency are critical to reversing these symptoms and restoring financial health.