INSIDEMIND COACHING LTD

Executive Summary

INSIDEMIND COACHING LTD has successfully transitioned from a period of financial distress to a stable and solvent position, as evidenced by positive net current assets and shareholders’ funds in 2023. The company’s small scale and micro-entity status require careful cash flow management and strategic growth planning to ensure continued financial health. Maintaining liquidity and expanding revenue streams will be key to its future resilience and success.

INSIDEMIND COACHING LTD - Analysis Report

Company Number: 12995894

Analysis Date: 2025-07-20 14:27 UTC

Financial Health Assessment for INSIDEMIND COACHING LTD

---

1. Financial Health Score: B

Explanation:
INSIDEMIND COACHING LTD demonstrates a solid recovery from previous financial distress, with positive net current assets and net assets in the latest year. The company shows good working capital management and a healthy equity base relative to its micro-entity scale. However, the small scale of operations and limited financial data constrain a higher rating. The score reflects a financially stable but still developing business.

---

2. Key Vital Signs

Metric	2023 (£)	2022 (£)	Interpretation
Current Assets	26,301	9,136	Increased liquidity, indicating improved cash or receivables.
Current Liabilities	12,091	11,373	Slight increase but manageable relative to assets.
Net Current Assets	14,210	-2,237	Shift from negative to positive—strong sign of recovery.
Net Assets (Shareholder Funds)	14,210	-2,237	Indicates positive equity growth; company now solvent.
Share Capital	1.00	1.00	Nominal share capital, typical for micro-entities.
Employees	1	1	Extremely small scale—low operational complexity.

Interpretation of Vital Signs:

• Healthy Cash Flow Proxy: The current assets significantly exceed current liabilities, illustrating a "healthy cash flow" position and ability to meet short-term obligations without stress.
• Symptom of Financial Distress Previously: Negative net current assets in 2022 signaled liquidity challenges and risk of insolvency. This has been corrected in 2023.
• Positive Equity Build: Net assets have turned positive, reflecting either retained profits or capital injections, enhancing the company’s financial resilience.
• Micro-Entity Size: The company’s scale is very small, limiting financial complexity but also growth capacity.

---

3. Diagnosis

INSIDEMIND COACHING LTD has shown a significant improvement in financial health over the last reporting period. The turnaround from a net current liability position in 2022 to a comfortable net current asset surplus in 2023 indicates effective management of working capital and operational cash flows. The positive net assets and shareholders’ funds confirm solvency and a stable equity position, which is crucial for ongoing operations.

The business operates as a micro-entity with minimal fixed assets reported, implying a service-oriented model (consistent with life/coaching activities). The single employee count suggests the business is likely owner-operated, reducing payroll and overhead risks but also implying reliance on the director’s active management.

No off-balance-sheet risks or contingent liabilities are reported, which is reassuring, and the company is current with its statutory filing obligations, reducing administrative risk.

---

4. Recommendations

To maintain and improve financial wellness, the following steps are advised:

• Maintain Positive Working Capital: Continue monitoring cash inflows and outflows closely to sustain the positive net current asset position. Given the micro scale, even small cash flow disruptions can impact liquidity.

• Build Financial Resilience: Consider building a cash reserve or contingency fund to buffer against unexpected expenses or revenue fluctuations, especially important in coaching services which may be seasonally variable.

• Expand Revenue Streams: Explore diversifying service offerings or client base to grow turnover without significantly increasing fixed costs.

• Financial Planning & Budgeting: Implement a simple but structured budgeting process to forecast income and expenses, helping anticipate cash shortfalls early.

• Regular Financial Review: Even as a micro-company, periodic review of financial statements with a professional advisor will help identify emerging risks or opportunities.

• Marketing and Client Acquisition: Invest in digital marketing or partnerships to enhance visibility and client acquisition, leveraging the existing website and contact info.

---

Executive Summary