LISA MCMURTRY COACHING LIMITED

Executive Summary

Lisa McMurtry Coaching Limited shows signs of significant financial stress, notably a reversal into negative net current assets and near-zero equity, raising high solvency and liquidity risks. However, the company remains compliant with filing obligations and active, suggesting potential to address these issues. Further due diligence is recommended to clarify cash flow dynamics, profitability, and strategic outlook before considering investment.

LISA MCMURTRY COACHING LIMITED - Analysis Report

Company Number: 12906117

Analysis Date: 2025-07-29 19:21 UTC

1. Risk Rating: HIGH
   The company exhibits a significant deterioration in net current assets from £1,151 (FY 2023) to a negative £996 (FY 2024), indicating a liquidity shortfall. Shareholders’ funds have likewise diminished drastically from £1,405 to just £1, suggesting erosion of equity and potential solvency concerns.

2. Key Concerns:

• Liquidity Risk: Current liabilities (£3,604) now exceed current assets (£2,608), impairing the company’s ability to meet short-term obligations.
• Equity Erosion: Shareholders’ funds reduced to £1, effectively wiping out retained reserves, which raises questions about the company’s financial resilience and ongoing viability.
• Lack of Financial Depth: Micro-entity status with minimal fixed assets (£997) and only one employee limits operational scale and potential to generate revenue to offset liabilities.

3. Positive Indicators:

• Timely Filings: No overdue accounts or confirmation statements, indicating compliance with statutory filing requirements.
• Active Status: The company is actively registered and not under any insolvency process, providing a window for recovery or restructuring.
• Stable Incorporation: Incorporated in 2020, the company has maintained continuous operation for nearly four years.

4. Due Diligence Notes:

• Cash Flow Analysis: Investigate detailed cash flow statements and working capital management to assess operational cash generation or reliance on external financing.
• Profitability Trends: Examine profit and loss data for signs of declining revenues or increasing expenses contributing to equity depletion.
• Director and Ownership Review: Confirm any changes in management or ownership that could impact future strategy or financial support.
• Contingent Liabilities: Check for off-balance sheet liabilities or pending legal matters that may exacerbate financial strain.
• Business Model Sustainability: Evaluate client base, contracts, and market positioning given the industry classification (“Other business support services”) and small operational scale.