MATT SMITH COACHING LTD

Executive Summary

MATT SMITH COACHING LTD is financially stable with positive working capital and net assets that have grown steadily, reflecting a healthy financial state for a micro-entity. The business operates without employees, keeping overheads low, but future growth will require scaling operations and strengthening cash reserves. Overall, the company is solvent with no immediate distress signs, but proactive steps to build financial resilience and expand revenue streams are advisable.

MATT SMITH COACHING LTD - Analysis Report

Company Number: 13807913

Analysis Date: 2025-07-29 15:49 UTC

Financial Health Assessment for MATT SMITH COACHING LTD (As of 31 December 2024)

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1. Financial Health Score: B

Explanation:
The company shows a positive and improving net asset position with modest but stable working capital. While the absolute figures are small—consistent with a micro-entity—the financial "vital signs" indicate the business is solvent, maintaining positive equity, and managing liabilities well. The score reflects a "healthy but cautious" financial state typical of a very small start-up or early-stage business without employees.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Current Assets	238	Cash or equivalents and receivables are minimal but have increased compared to previous years.
Current Liabilities	39	Short-term debts remain stable and small relative to assets.
Net Current Assets	198	Positive working capital indicates the company can cover short-term obligations comfortably.
Net Assets / Shareholders' Funds	198	Positive net worth; equity is growing, signaling retained earnings or capital injections.
Employee Count	0	No employees, suggesting low overheads but also limited operational scale.
Account Category	Micro	Minimal filing requirements and small scale, consistent with low asset and liability levels.

Interpretation:
The company’s balance sheet resembles a healthy "heartbeat" with positive working capital and net assets steadily increasing from £58 in 2023 to £198 in 2024. Despite the small scale, these signs reflect an absence of financial distress symptoms such as liquidity crunches or negative equity.

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3. Diagnosis: What the Financial Data Reveals About Business Health

• Healthy Cash Flow Proxy: Although cash flow statements are not provided, current assets exceeding current liabilities indicate the company has sufficient liquid resources to meet short-term commitments. This is akin to a "stable pulse" suggesting operational liquidity.

• Growth in Net Assets: The increase in net assets over the past two years, from £58 to £198, suggests either retained earnings from profitable operations or capital contributions. This "strengthening immune system" is a positive sign for sustainability.

• No Employees: The company operates without employees, likely relying on the director(s) and possibly outsourcing. This keeps costs low but may limit growth potential.

• Micro-Entity Status: Being a micro-entity means simplified reporting but also implies the business is in a nascent or niche stage. This limits the scale but reduces compliance burdens.

• No Audit Required: The exemption from audit is typical for micro companies but means less external scrutiny. Internal controls and management vigilance are crucial to detect any "hidden symptoms."

• Directors and Control: Both directors have significant control and share ownership, which can be a strength for decision-making agility but also a risk if diversification of expertise and oversight is limited.

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4. Recommendations to Improve Financial Wellness

• Build Cash Reserves: Although current assets cover liabilities, increasing cash reserves ("strengthening the heart") would improve resilience against unexpected expenses or downturns.

• Enhance Revenue Streams: Explore opportunities to grow client base or service offerings to increase profitability, which will further boost net assets and financial strength.

• Consider Employee or Contractor Support: To scale operations, consider hiring or engaging contractors. This can increase capacity but must be managed carefully to avoid cost overruns.

• Maintain Rigorous Financial Controls: Without audit oversight, ensure internal processes are robust to monitor cash flow, expenses, and financial reporting accuracy.

• Plan for Growth: As the company expands beyond micro thresholds, prepare for increased compliance and financial management complexity.

• Monitor Liabilities: Keep short-term liabilities controlled and avoid accruing debts that could stress liquidity.

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