Company Number: 13118738

Analysis Date: 2025-07-20 12:13 UTC

Financial Health Assessment Report: LUCY GREEN COACHING LTD

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1. Financial Health Score: B-

Explanation:
Lucy Green Coaching Ltd shows a stable but modest financial position typical of a micro-entity in its early years. The company maintains positive net current assets and net assets, which indicate a "healthy cash flow" and "stable vital signs." However, the very low asset base and limited financial scale present some vulnerability, reflected by a B- grade. This suggests the company is currently financially sound but with limited financial buffer and growth capital.

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2. Key Vital Signs

Metric	2024 (£)	Interpretation
Current Assets	246	Low cash and receivables, but sufficient to cover short-term obligations.
Current Liabilities	13	Minimal short-term debts, indicating good liquidity management.
Net Current Assets	233	Positive working capital, a sign of operational liquidity and short-term stability.
Net Assets	233	Positive equity but very small, reflecting limited retained earnings and asset base.
Share Capital	1	Nominal share capital, typical for micro-entities.
Employee Count	1	Single-person operation; minimal fixed overheads.

Trends & Observations:

• Net current assets have slightly decreased from £258 (2023) to £233 (2024), showing a mild tightening of liquidity but still positive.
• Current liabilities decreased significantly from £511 to £13, reflecting improved short-term debt management or settlement of creditors.
• Current assets reduced from £769 to £246, which demands attention but is offset by the drop in liabilities.
• Net assets increased from £177 to £233, indicating a mild improvement in retained earnings or asset revaluation.

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3. Diagnosis

Lucy Green Coaching Ltd exhibits the financial "vital signs" of a small, early-stage business that is maintaining operational liquidity and controlling liabilities well. The "symptoms" — low asset base and minimal capital — suggest limited financial resilience to shocks or rapid expansion needs. The company is not showing signs of distress, with no overdue filings or significant liabilities, but the small scale and low cash reserves represent a "fragile health condition" typical of micro-entities reliant on a single individual.

The absence of an audit and use of micro-entity accounting standards align with the company's size and complexity, ensuring compliance but limiting detailed financial insights. The director has full control over the company, simplifying decision-making but concentrating risk.

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4. Recommendations

To strengthen the financial health and improve resilience, the following actions are advised:

• Build Cash Reserves: Aim to increase current assets, particularly cash balances, to create a buffer against unexpected expenses or market fluctuations. Consider phased savings or reinvesting profits.
• Monitor Working Capital: Continue aggressive management of payables and receivables to maintain positive net current assets. Avoid accumulating short-term liabilities.
• Diversify Revenue Streams: Explore expanding services or client base to increase turnover and reduce dependency risk on limited income sources.
• Formal Financial Planning: Develop a simple budget and cash flow forecast to anticipate periods of low liquidity and plan accordingly.
• Consider Capital Injection: If growth is anticipated, assess options for additional capital (e.g., director loans, equity investment) to improve net assets and financial robustness.
• Retain Earnings: Avoid unnecessary drawings or distributions to shareholders to build retained earnings and equity base over time.
• Continue Compliance Vigilance: Maintain timely filing of accounts and confirmation statements to avoid penalties and safeguard company status.

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