HAYSCOACHING LTD

Executive Summary

HAYSCOACHING LTD, as a young micro-entity, shows early signs of financial distress with negative working capital and net assets, indicating liquidity challenges and reliance on director funding. Immediate steps to improve cash flow and capital structure are critical to stabilize operations and support sustainable growth.

HAYSCOACHING LTD - Analysis Report

Company Number: 14761422

Analysis Date: 2025-07-19 12:14 UTC

Financial Health Assessment for HAYSCOACHING LTD

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1. Financial Health Score: D

Explanation:
The company presents clear symptoms of financial distress, primarily due to significant net current liabilities and negative net assets. Being a micro-entity with limited operations and financial history, the financial "vital signs" indicate an early-stage business struggling with liquidity and capitalization. Immediate corrective action is needed to improve financial stability and avoid progression to insolvency.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	254	Extremely low level of liquid resources
Current Liabilities	6,484	Short-term debts significantly exceed assets
Net Current Assets	-6,230	Negative working capital; "cash flow distress"
Net Assets (Shareholders’ Funds)	-7,230	Negative equity; company owes more than owns
Director’s Loan Account	-6,484	Director has funded company, indicating external reliance
Employee Count	1	Very small operational scale

Interpretation:

• The company’s current assets barely cover a fraction of its current liabilities, indicating an inability to meet short-term obligations without additional funding.
• Negative net assets signal that liabilities exceed total assets, a warning sign akin to "organ failure" in financial terms.
• The director’s loan account being negative and matching current liabilities suggests the company is dependent on director financing to stay afloat.
• With only one employee and being newly incorporated, operational scale is minimal but the financial structure is fragile.

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3. Diagnosis

HAYSCOACHING LTD is a newly established private limited company operating in the sports and recreation education sector. The financial statements reflect a company in its infancy phase, showing a "symptom" of financial imbalance and liquidity strain. Negative net working capital and equity indicate that the business is currently "underweight" financially—its liabilities outweigh its assets, which can impair its ability to grow or even sustain operations without prompt intervention.

The director has injected funds in the form of loans, which is a positive sign of commitment but also highlights the company’s reliance on external support. The absence of audit and the micro-entity classification limit the depth of financial data available, but the core indicators point to a critical need for capital infusion or revenue generation to restore financial health.

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4. Recommendations

Immediate Actions:

• Improve Liquidity: Seek additional funding sources (e.g., equity investment, bank loans) to reduce the net current liability gap and ensure sufficient cash flow for operational needs.
• Director Loan Management: Formalize and monitor director loans to ensure clarity on repayment terms and avoid potential conflicts with creditors.
• Cost Control: Given the minimal operations, maintain tight control on overheads and variable costs to prevent exacerbating financial strain.
• Revenue Generation: Accelerate client acquisition and service delivery to improve turnover and create positive cash inflows.

Medium to Long Term:

• Capital Structure Review: Consider restructuring equity and liabilities to strengthen net assets and improve solvency ratios.
• Financial Monitoring: Implement regular cash flow forecasting and financial health checks to detect and remedy financial distress symptoms early.
• Business Plan Development: Develop a robust strategic plan focusing on sustainable growth, including marketing, pricing, and service diversification to enhance revenue streams.
• Professional Support: Engage financial advisors or accountants for ongoing financial management and compliance to ensure statutory obligations are met timely.

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