NEXT LEVEL COACHING PRESTON LTD

Executive Summary

NEXT LEVEL COACHING PRESTON LTD is currently facing liquidity challenges and a significant reduction in net assets, indicating a fragile financial state. Although the company remains solvent and operational, proactive measures to improve cash flow, profitability, and equity are critical to ensure future financial stability and growth.

NEXT LEVEL COACHING PRESTON LTD - Analysis Report

Company Number: 13443461

Analysis Date: 2025-07-29 20:10 UTC

Financial Health Assessment for NEXT LEVEL COACHING PRESTON LTD

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1. Financial Health Score: C

Explanation:
The company demonstrates modest financial stability but exhibits signs of strain in liquidity and net asset value. The financials show declining net current assets and net assets, indicating some stress on working capital. While not critical, the symptoms suggest the need for close monitoring and proactive management to prevent further deterioration.

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2. Key Vital Signs

Metric	2025 (£)	2024 (£)	Trend	Interpretation
Current Assets	1,750	6,474	↓ significant	Sharp decrease in liquid and short-term assets; potential cash flow challenges.
Current Liabilities	1,598	3,467	↓ significant	Reduced short-term obligations, but still close to current assets.
Net Current Assets	152	3,007	↓ dramatic	Working capital severely reduced; “symptom of distress” in liquidity.
Net Assets (Shareholders Funds)	152	838	↓ significant	Declining equity base; erosion of financial cushion.
Director Loan Outstanding	1,079	4,373	↓ improved	Reduction in director loan receivable, improving asset quality.

Additional Observations:

• The company is classified as a micro-entity, meaning simpler reporting but also generally smaller scale and resources.
• The director, Mr. Alex Howard, holds full control and invested minimal share capital (£1.00), indicating reliance on internal funding and possibly informal financing.
• No long-term liabilities as of 2025, which reduces solvency risk but also may indicate limited external financing.
• Average employee count is 1, suggesting a very small operation, which can limit scale but also reduces fixed overhead.

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3. Diagnosis: What the Financial Data Reveals

NEXT LEVEL COACHING PRESTON LTD’s financial health shows symptoms of liquidity strain and equity erosion. The sharp drop in current assets from £6,474 to £1,750, coupled with current liabilities remaining nearly as high at £1,598, indicates a tight cash flow position — much like a patient with low blood pressure struggling to deliver nutrients effectively. This reduced liquidity (net current assets at £152) means the company may face difficulties meeting short-term obligations or unexpected expenses.

The decline in net assets from £838 to £152 further signals that the company’s financial reserves or “immune system” is weakening. This could stem from operating losses, drawing on reserves, or asset write-downs. However, the reduction in director loans receivable implies that some internal funds have been recovered or repaid, a positive sign akin to removing a burden from the system.

The absence of long-term creditors is a good sign, indicating no immediate solvency threat from large debt repayments. However, the very slim equity base and low cash reserves suggest the company is vulnerable to external shocks or downturns.

Overall, the company is surviving but in a fragile state requiring intervention to restore financial vitality.

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4. Recommendations: Actions to Improve Financial Wellness

1. Strengthen Liquidity (Restore Healthy Cash Flow):

   • Accelerate collection of receivables and manage payables to optimize cash inflows and outflows.
   • Consider short-term financing options or director loans to bolster working capital temporarily if needed.

2. Improve Profitability and Retain Earnings:

   • Review pricing, cost control, and revenue generation strategies to reverse the decline in net assets.
   • Avoid unnecessary expenses and focus on core profitable activities.

3. Formalize Financial Planning:

   • Develop a rolling cash flow forecast to anticipate liquidity shortages early.
   • Establish budgeting and financial controls to monitor financial health continuously.

4. Consider Capital Injection:

   • Director or external investment to increase equity and create a buffer against future shocks.
   • Share capital increase or external borrowing if appropriate.

5. Maintain Compliance and Reporting Timeliness:

   • Continue timely filing of accounts and confirmation statements to avoid penalties and maintain credibility.

6. Monitor Director Loan Exposure:

   • Track the director loan balance carefully and formalize repayment plans to avoid future disputes or tax issues.

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Medical Analogy Summary

NEXT LEVEL COACHING PRESTON LTD is akin to a patient showing early signs of circulatory strain with low blood (cash) volume and weakening immune defenses (declining equity). Immediate care to boost liquidity and rebuild financial resilience is essential to avoid more severe distress or financial “collapse.” With attentive management and targeted actions, recovery and sustained health are achievable.

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