RAVENSCROFT COACHING LTD

Executive Summary

Ravenscroft Coaching Ltd shows ongoing liquidity and solvency challenges with negative net current assets and minimal equity. While statutory filings are current and there are no formal insolvency actions, the company’s financial position suggests a high risk of financial distress. Further due diligence on cash flow and operational sustainability is recommended before considering investment.

RAVENSCROFT COACHING LTD - Analysis Report

Company Number: 13619695

Analysis Date: 2025-07-29 15:32 UTC

1. Risk Rating: HIGH
   Ravenscroft Coaching Ltd exhibits significant solvency and liquidity risks, as evidenced by persistent negative net current assets and extremely thin equity. The company’s net current liabilities surpass its current assets consistently over three years, indicating potential inability to meet short-term obligations.

2. Key Concerns:

• Persistent negative net working capital: Current liabilities exceed current assets by £307 at the 2023 year-end, signaling liquidity stress.
• Minimal equity base: Shareholders’ funds have declined from £63 in 2021 and 2022 to just £2 in 2023, suggesting erosion of capital and limited financial buffer.
• Micro-entity scale with one employee and very low fixed assets: Limited operational scale may constrain revenue generation, growth prospects, and ability to absorb financial shocks.

3. Positive Indicators:

• Up-to-date filings: Both accounts and confirmation statements are filed on time, indicating compliance with statutory requirements.
• No signs of insolvency proceedings or liquidation: The company remains active and not under formal distress processes.
• Clear business classification: Operating in sports and recreation education (SIC 85510), a sector which could have steady demand depending on market positioning.

4. Due Diligence Notes:

• Investigate cash flow patterns and sources of working capital financing, including any director loans or external funding arrangements.
• Review profit and loss trends and revenue drivers to assess sustainability of operations and ability to improve liquidity.
• Confirm director background and governance practices given the very limited scale and potential financial vulnerability.
• Assess any contingent liabilities or off-balance sheet arrangements that may impact financial health.
• Examine the business model viability, client base, and competitive positioning in the sports education sector.