Company Number: 15086763

Analysis Date: 2025-07-29 19:49 UTC

Financial Health Assessment for COASTLINE EVENTS LTD

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1. Financial Health Score: C

Explanation:
The company shows moderate financial stability in its first year of operation, with tangible assets and positive net assets indicating some capital strength. However, the presence of significant long-term liabilities exceeding current assets introduces concerns about liquidity and solvency. This score suggests the company is stable but with symptoms that warrant close monitoring and prudent management.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets (Tangible)	151,989	Healthy investment in long-term assets for operations.
Current Assets	132,862	Good level of short-term assets, including cash and debtors.
Cash	50,723	Moderate cash on hand, important for daily operations.
Debtors	82,139	Significant receivables; potential risk if not collected timely.
Current Liabilities	91,579	Debts due within one year; manageable but close to current assets.
Net Current Assets	41,283	Positive working capital, indicating ability to cover short-term obligations.
Long-term Liabilities	145,340	Significant long-term debts, a symptom of financial leverage.
Net Assets	47,932	Positive equity base, but relatively modest compared to liabilities.
Shareholders’ Funds	47,932	Equity fully represents net assets; company is shareholder-funded.

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3. Diagnosis

COASTLINE EVENTS LTD is in its infancy, having incorporated in August 2023 and filing first accounts for the year ending August 2024. The company has invested heavily in tangible fixed assets, showing a strategy focused on asset-based operations, likely relevant to its machinery leasing activity (SIC 77390).

The "healthy cash flow" sign appears in the positive net current assets (£41,283), revealing the company currently can meet its short-term obligations. However, the current liabilities (£91,579) are quite close to current assets (£132,862), indicating limited buffer. The company's "symptoms of distress" lie mainly in its long-term liabilities (£145,340), which exceed net current assets and form a substantial debt burden relative to its equity.

The net assets and shareholders’ funds being positive at £47,932 indicate the company has not yet suffered losses, a positive "vital sign" reflecting initial financial strength. However, the equity base is relatively small compared to the liabilities, suggesting high financial leverage. This can be acceptable for a new company with growth ambitions, but it also raises solvency risk if cash flows become strained.

The director, Stuart Philip Hartley, holds full control and voting rights, which centralizes decision-making but also places responsibility firmly on this individual to manage financial risks prudently.

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4. Recommendations

• Improve Liquidity Management:
  Focus on accelerating debtor collections to increase cash availability. Consider tighter credit control to avoid overdue payments, as high receivables pose a risk to cash flow.

• Debt Restructuring or Reduction:
  Explore options to restructure long-term liabilities to improve balance sheet health, possibly negotiating longer terms or lower interest rates to ease financial strain.

• Build Equity Cushion:
  If feasible, inject additional equity capital or retain profits to increase shareholder funds, thereby improving solvency ratios and reducing financial leverage.

• Monitor Asset Utilization:
  Ensure the tangible assets purchased are generating adequate returns. Underutilized assets can become a burden and impair financial health.

• Prepare for Growth Carefully:
  As a young company, cautious expansion is recommended. Avoid overextending credit or taking on excessive debt until operational cash flows are more predictable and stable.

• Regular Financial Reviews:
  Implement monthly or quarterly financial health checks to identify early signs of distress, allowing for timely corrective actions.

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