Company Number: 15093064

Analysis Date: 2025-07-29 15:23 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Rachel Barton Consultancy & Coaching Ltd is a newly incorporated private limited company (Aug 2023) operating in educational support and management consultancy services. The company’s financials show a positive net current asset position but only marginally (£35), indicating very tight working capital. The balance sheet is small reflecting the micro-company status, with no employees and limited trading history. The director has provided a loan of £8,710 to support operations, which is critical for liquidity. Given the short trading history and marginal net assets, credit approval should be conditional on monitoring trading progress, cash flow, and debt servicing capability over the next 12 months.

2. Financial Strength:

• Total current assets stand at £11,954, composed mainly of cash (£7,409) and trade/other debtors (£4,545).
• Current liabilities are £11,919, including VAT, taxes, accruals, and director loans.
• Net current assets (working capital) are a very modest £35, indicating minimal buffer against liabilities.
• Shareholders’ funds are £35, representing start-up capital and initial retained earnings.
• No fixed assets or long-term borrowing reported.
  Overall, the balance sheet is very lean, typical for a start-up micro entity, but the reliance on director loans for working capital is a concern for creditor priority and liquidity.

3. Cash Flow Assessment:

• Cash balance of £7,409 provides some immediate liquidity.
• Debtors of £4,545 suggest some sales on credit, but their collectability and ageing are not disclosed.
• Current liabilities include a significant director loan (£8,710) which may be subordinated but must be repaid in due course.
• The company reports no employees, implying low overheads currently.
• The accounts confirm going concern assumption but no explicit cash flow statement is provided.
  Liquidity is fragile and dependent on continued revenue generation and/or director funding. Cash conversion cycle and debtor collection efficiency should be closely monitored.

4. Monitoring Points:

• Monthly cash flow and debtor collections to ensure liquidity is maintained.
• Timely repayment or restructuring plans for director loans to avoid creditor conflicts.
• Filing of next financial statements and confirmation statements on schedule.
• Revenue growth and profitability trends to support improved net assets and working capital.
• Any changes in director or PSC status, as control and management currently rest solely with Rachel Elizabeth Barton.