GC COACHING ACADEMY LLP

Executive Summary

GC Coaching Academy LLP shows early financial stability with a modest profit and positive net assets but exhibits negative working capital, indicating short-term liquidity challenges. The business is in a healthy startup phase but should focus on improving cash flow management and scaling profitability to strengthen its financial condition. With prudent financial management and member support, the LLP is positioned for sustainable growth.

GC COACHING ACADEMY LLP - Analysis Report

Company Number: NC001745

Analysis Date: 2025-07-29 14:06 UTC

Financial Health Assessment for GC Coaching Academy LLP

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1. Financial Health Score: B-

Explanation:
GC Coaching Academy LLP, a newly formed limited liability partnership incorporated in 2023, shows early signs of financial stability with positive net assets and a small profit for its first financial year. However, the relatively modest scale of its assets and current liabilities, combined with the absence of detailed profit and loss data, warrants a cautious rating. The LLP is in a “healthy” startup phase but has limited financial history and working capital constraints, which impacts the overall robustness of its financial condition.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	6,479	Tangible assets held indicate some investment in operational infrastructure.
Current Assets (Cash)	10,325	Cash at bank represents liquidity but is modest in size.
Current Liabilities	(14,213)	Short-term debts exceed cash, indicating net current liabilities.
Net Current Assets (Working Capital)	(3,888)	Negative working capital is a symptom of potential short-term liquidity pressure.
Total Net Assets	2,591	Positive net assets reflect equity held by members; a sign of solvency.
Profit for the Year	2,591	The LLP generated a small profit in its first year, indicating initial operational success.

• Working Capital ("Blood Pressure")
  The LLP’s working capital is negative (£3,888), which resembles a symptom of stress on short-term liquidity. This could constrain the LLP’s ability to meet immediate obligations without additional inflows or credit.

• Profitability ("Heartbeat")
  The presence of a profit, even a modest one, is a positive sign indicating the business is generating value from its operations.

• Asset Base ("Skeletal Structure")
  Fixed assets of £6,479 provide a foundation for the LLP’s activities, but the scale is small—typical for a startup in its infancy.

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3. Diagnosis

GC Coaching Academy LLP is in the early stages of its business lifecycle, showing the vital "sign" of profitability and positive net assets. However, the negative working capital ("symptom of liquidity strain") suggests that while the LLP is solvent overall, it may face challenges in covering short-term liabilities with available cash and receivables. The absence of employees indicates a lean operational model, possibly relying on the designated members for service delivery.

The LLP benefits from the members’ confidence in going concern assumptions, which means they expect the business to continue operating and improve its financial health. The limited financial data and exemption from audit leave some uncertainty about the detailed operational cash flow and cost structure.

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4. Recommendations

To improve financial wellness and address current symptoms of distress, the LLP should consider:

• Enhance Working Capital Management:
  Explore options to increase liquid assets or reduce short-term liabilities. This might include negotiating longer payment terms with creditors or accelerating client payments.

• Monitor Cash Flow Closely:
  Establish a robust cash flow forecasting system to anticipate and manage liquidity gaps proactively.

• Build Profit Margins and Revenue Streams:
  Since profitability is modest, focus on scaling services or increasing pricing to boost margins while controlling costs.

• Maintain Strong Member Support:
  With members holding significant control and voting rights, ensure clear agreements on capital contributions or loans to support liquidity if needed.

• Prepare for Future Filings and Transparency:
  Maintain timely filing of accounts and returns to preserve regulatory compliance and market confidence.

• Plan for Growth:
  As the LLP gains traction, consider investing in marketing and potentially hiring staff to expand operational capacity and revenue.

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