KA COACHING LIMITED

Executive Summary

KA Coaching Limited demonstrates improving working capital and a modest increase in net assets, reflecting early-stage growth and operational stability. However, the company has a thin equity base and low liquid assets, signaling caution around liquidity management. Strengthening cash reserves and equity, alongside enhanced financial transparency, will be crucial for sustaining healthy financial wellness as the business expands.

KA COACHING LIMITED - Analysis Report

Company Number: 13625651

Analysis Date: 2025-07-20 15:56 UTC

Financial Health Assessment: KA Coaching Limited (As of 30 September 2024)

---

1. Financial Health Score: C+

This grading reflects a company that shows signs of recovery and asset growth but still has vulnerabilities in liquidity management and overall capital strength. The business exhibits some "symptoms of distress" in working capital structure, though it is not in critical condition.

---

2. Key Vital Signs

Metric	2024 Value	Interpretation
Fixed Assets	£315	Very low, consistent with a service-oriented micro-entity
Current Assets	£167	Low cash and receivables; a possible "weak pulse" in liquidity
Current Liabilities	-£740	Negative figure indicates net payables or creditors; a concern for immediate obligations
Net Current Assets (Working Capital)	£907	Positive working capital suggests the company can cover short-term liabilities, signaling a "healthy cash flow" buffer
Total Assets Less Current Liabilities	£1,222	Suggests asset base exceeding short term debts
Net Assets / Shareholders Funds	£122	Thin equity base, "fragile immune system" for absorbing shocks
Average Employees	2	Small workforce consistent with micro-accounting category
Account Category	Micro	Simplified reporting, typical for early-stage/small businesses
Profit & Loss	Not disclosed	Lack of profit or loss data limits full diagnosis

---

3. Diagnosis: What the Numbers Reveal

• Liquidity and Working Capital: The company reports a positive net current assets position (£907) in 2024, an improvement over prior years (£205 in 2023). This indicates improved short-term financial health and an ability to meet immediate obligations, a "strong heartbeat" in operational cash flow. However, the raw current asset number (£167) is low compared to current liabilities (£740 negative), suggesting some complexity or reclassification—this likely reflects timing or accounting treatment of creditors and accruals.

• Asset Base and Capitalization: Fixed assets are minimal (£315), reflecting the nature of the business (sports and recreation education), which is not capital intensive. The net assets have increased from £49 in 2023 to £122 in 2024, indicating some accumulation of equity or retained earnings, but the absolute value remains low, making the company vulnerable to financial shocks—akin to a "weak immune system."

• Growth and Activity: The average number of employees doubled from 1 to 2, which is a positive "sign of life" indicating business growth or expansion.

• Profitability: Absence of profit and loss data limits the full diagnostic picture. The increase in net assets hints at possible profitability or capital injection, but this cannot be confirmed without explicit P&L data.

• Compliance and Reporting: The company is up-to-date on filings with no overdue accounts or returns, which is a good sign of healthy governance and compliance "vital signs."

---

4. Recommendations: Strengthening Financial Wellness

• Improve Cash Reserves: The company should focus on increasing liquid current assets (cash or receivables) to build a stronger buffer against short-term liabilities, reducing "cash flow palpitations."

• Clarify Liabilities Structure: The negative current liabilities figure is unusual and warrants review to ensure accurate creditor classification and to avoid potential liquidity "arrhythmias."

• Profit & Loss Transparency: Begin preparing and reviewing P&L statements internally even if not required by micro-entity rules. Understanding profitability trends is critical to diagnose and treat underlying financial health issues.

• Build Equity Base: Consider strategies to build retained earnings or inject capital to strengthen the balance sheet, thereby improving the company’s financial "immune system."

• Monitor Growth Costs: As the company grows (more employees), ensure costs do not outpace revenue growth to avoid "overexertion" of financial resources.

• Regular Financial Reviews: Schedule periodic financial health checks to catch symptoms early and adjust business strategies accordingly.

---