DB PERFORMANCE COACHING LIMITED

Executive Summary

DB Performance Coaching Limited has demonstrated significant improvement in financial health over the past year, with positive working capital and increased net assets indicating a recovery from prior liquidity challenges. While liquidity and solvency have strengthened, the company should focus on building equity and maintaining prudent financial controls to ensure sustainable, healthy growth in a competitive sector.

DB PERFORMANCE COACHING LIMITED - Analysis Report

Company Number: 12439556

Analysis Date: 2025-07-20 12:05 UTC

Financial Health Assessment for DB PERFORMANCE COACHING LIMITED

---

1. Financial Health Score: B-

Explanation:
DB Performance Coaching Limited shows signs of recovery and improving financial health compared to prior years, particularly in working capital and net assets. However, the company still carries some risks related to past liabilities and relatively low equity base. The score reflects a cautious but positive outlook with room for strengthening the financial foundation.

---

2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	2,030	Indicates modest investment in long-term assets.
Current Assets	10,787	Healthy current assets, showing liquidity improvement.
Cash	8,092	Strong cash reserves supporting daily operations.
Debtors	2,695	Manageable receivables, indicating decent collection.
Current Liabilities	8,974	Reduced from prior years, easing short-term pressure.
Net Current Assets	1,813	Positive working capital, a "healthy cash flow pulse."
Net Assets (Equity)	3,843	Increased significantly, indicating improved solvency.
Share Capital	120	Minimal capital base, typical for small private company.

---

3. Diagnosis

Symptoms Analysis:

• The company has demonstrated a marked improvement in its working capital position, moving from a negative net current asset position (-£5,262 in 2023) to a positive £1,813 in 2024. This is a key "vital sign" of financial health, showing the company can cover its short-term debts with current assets.
• Cash reserves have increased significantly (from £6,079 to £8,092), indicating improved liquidity and operational cash flow. This is akin to a patient’s improving blood pressure after treatment.
• The elimination of long-term bank loans (£6,750 in 2023) by 2024 reduces financial strain and interest burden, improving the balance sheet's strength.
• Net assets (equity) grew from £290 to £3,843, which reflects accumulated profits or retained earnings building up the company's financial "immune system."
• The reduction of investments from £10,294 to nil in 2024 could indicate asset disposals or write-downs which may have been a strategic move to improve liquidity or settle obligations.
• The company continues to be controlled by a single principal shareholder/director (Mr. Darren Burke), which can be good for agile decision-making but could expose the business to governance risks if not managed well.
• The company operates in the sports and recreation education sector (SIC 85510), which typically requires modest fixed assets but relies heavily on service delivery and client receivables.

Underlying Conditions:

• The previous years showed "symptoms of distress" with negative working capital and reliance on bank loans, suggesting past liquidity challenges.
• The current improvement suggests recent operational or financial restructuring has been effective.
• However, the relatively low share capital and modest net assets mean the company has a limited buffer against future shocks.

---

4. Recommendations

To improve financial wellness further, the company should:

• Maintain positive working capital: Continue monitoring receivables closely to prevent overdue debts, ensuring the cash flow "heartbeat" remains strong.
• Build equity base: Consider retaining more profits in the business or injecting additional capital to create a stronger financial cushion.
• Manage liabilities prudently: Avoid reintroducing long-term bank debt unless necessary, and strive to reduce current liabilities through careful expense control.
• Enhance financial forecasting: Implement regular cash flow projections to anticipate liquidity needs and avoid "financial fatigue."
• Governance & Controls: As a closely held company, formalize financial controls and risk management to safeguard against over-reliance on principal directors.
• Strategic investment: Evaluate whether reinvestment into fixed assets or technology could improve service delivery efficiency without overextending finances.

---