Company Number: 13879239

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

Financial Health Assessment for FACILITATE COACHING AND CONSULTANCY LIMITED

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1. Financial Health Score:

Grade: C (Fair)

Explanation:
The company shows some signs of financial stress in the latest year, with a notably weakened liquidity position and declining net assets. However, it remains a going concern without overdue filings or immediate insolvency indicators. The score reflects a need for caution and active management of working capital.

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2. Key Vital Signs:

Metric	2024 (£)	2023 (£)	Interpretation
Fixed Assets	4,609	0	Small increase in long-term assets; minor impact.
Current Assets	65,850	10,569	Significant rise, possibly increased cash/debtors.
Current Liabilities	70,909	4,335	Substantial increase in short-term obligations.
Net Current Assets (Working Capital)	(3,872)	6,234	Shift from positive to negative; liquidity concern.
Shareholders' Funds (Equity)	737	6,234	Sharp decrease; erosion of net worth.
Number of Employees	3	1	Growth in headcount, indicating expansion.

• Liquidity (Net Current Assets): The shift from £6,234 positive working capital in 2023 to a £3,872 deficit in 2024 is a red flag. This "symptom" suggests the company may struggle to meet short-term obligations without additional cash inflows or financing.

• Solvency (Shareholders’ Funds): A steep decline from £6,234 to £737 signals dwindling equity cushions, reducing the buffer against losses.

• Growth Indicators: Increase in current assets and employees suggests business expansion, but the surge in current liabilities may indicate financing strain or delayed payments.

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3. Diagnosis:

FACILITATE COACHING AND CONSULTANCY LIMITED exhibits "symptoms of financial distress" primarily due to liquidity challenges. The negative working capital indicates that short-term liabilities exceed short-term assets, which can be a warning sign of cash flow pressure. The erosion of shareholders’ funds compounds this concern, meaning retained earnings or capital injections are insufficient to sustain growth or absorb losses.

The company is still in its infancy (incorporated 2022) and has grown rapidly in the latest year, as evidenced by increased assets and staff. However, this growth appears to come with stretched payables or other short-term obligations. The absence of a profit and loss statement in the accounts limits insight into profitability, but the financial position suggests losses or heavy reinvestment.

There are no overdue filings or formal insolvency proceedings, indicating compliance and no immediate regulatory distress.

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4. Recommendations:

1. Improve Liquidity Management:

   • Tighten credit control to accelerate cash collections.
   • Negotiate longer payment terms with suppliers to ease short-term cash outflows.
   • Consider short-term financing options (overdrafts, invoice factoring) to bridge liquidity gaps.

2. Review Cost Structure and Profitability:

   • Evaluate employee productivity and overheads to ensure the growth in staff is sustainable.
   • Prepare and review profit and loss accounts regularly to identify loss-making areas.

3. Enhance Financial Reporting:

   • Include profit and loss statements in future accounts for transparency and better diagnosis.
   • Use cash flow forecasts to anticipate funding needs and avoid surprises.

4. Strengthen Capital Base:

   • Explore equity injections or shareholder loans to bolster net assets and provide a cushion.

5. Strategic Growth Planning:

   • Match expansion plans to cash flow capacity to avoid overextension.
   • Monitor key financial ratios monthly to detect emerging issues early.

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Medical Analogy Summary:

The company’s financial "pulse" is weak due to a liquidity "arrhythmia" (negative working capital) and a shrinking "immune system" (equity base). While not in "critical condition," without intervention, the risk of "financial shock" increases. Prompt management action is required to restore stable "circulation" of cash and strengthen the company’s financial "health."

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