REHOBOTH COACHING LTD

Executive Summary

REHOBOTH COACHING LTD exhibits signs of financial distress with sustained negative net assets and limited liquidity, threatening its operational viability. Immediate capital support and revenue growth are essential to stabilize its financial condition and improve future outlook. The company remains active and compliant but requires proactive management to avert worsening financial health.

REHOBOTH COACHING LTD - Analysis Report

Company Number: 12531416

Analysis Date: 2025-07-29 20:15 UTC

Financial Health Assessment of REHOBOTH COACHING LTD (as at 31 March 2024)

---

1. Financial Health Score: D

Explanation:
The company shows persistent negative net assets (shareholders’ funds) over multiple years, indicating an ongoing capital deficiency. Current assets are minimal relative to liabilities, and while the company remains active, the financials reflect significant symptoms of distress. The grade D signals a concerning financial position with urgent need for corrective measures.

---

2. Key Vital Signs

Metric	2024 (£)	Interpretation
Net Assets (Shareholders’ Funds)	-24,665	Negative and worsening capital position; indicates liabilities exceed assets substantially.
Current Assets	942	Very low liquid resources; insufficient buffer against short-term liabilities.
Current Liabilities	25,608	High short-term obligations relative to cash and receivables.
Net Current Assets	942	Positive but extremely low working capital; limited operational liquidity.
Fixed Assets	0	No long-term tangible assets; all operations likely service-based or intangible.
Turnover	Not reported for 2024; £12,201 in 2020	Lack of recent revenue data suggests low or no turnover, impacting cash flow.
Employee Count	1	Micro entity with minimal staff overhead.

---

3. Diagnosis: What the Financial Data Reveals

• Capital Deficiency ("Anemia" of the balance sheet):
  The company’s net assets are deeply negative (~-£25k), showing a chronic shortfall in capital. This condition indicates that liabilities exceed assets significantly, akin to a patient running a persistent nutritional deficit. This weakens the company’s financial resilience to shocks.

• Liquidity Constraints ("Poor Circulation"):
  Current assets (£942) provide a very limited cushion against current liabilities (£25,608). Although net current assets are slightly positive, this is primarily because some liabilities are classified after one year (creditors falling due after more than one year: £25,608). The company’s liquid resources are minimal, suggesting cash flow challenges in meeting immediate obligations.

• Asset Base ("Lack of Structural Strength"):
  With no fixed assets, the company has no tangible collateral or long-term investments to leverage or sell in distress. This is typical of service-based micro entities but limits borrowing capacity and financial flexibility.

• Revenue and Profitability ("Weak Pulse"):
  No turnover reported in recent years except £12,201 in 2020 suggests that the business has struggled to generate significant income. This absence of revenue is a critical symptom of poor business viability or inactivity.

• Ownership and Control (“Single Patient Care”):
  The sole director and majority shareholder is Mrs. Emily Marshall Michalik, providing clear control but also concentration risk. The company’s survival depends heavily on this individual’s capacity to manage and inject resources if needed.

• Compliance and Status ("Stable but Fragile"):
  The company is active, up to date on filings, and not in liquidation or administration, which indicates regulatory compliance and operational continuity despite financial issues.

---

4. Recommendations: Specific Actions to Improve Financial Wellness

1. Capital Injection ("Nutritional Support"):
   Seek additional equity investment or shareholder loans to restore positive net assets. Without capital infusion, the company risks insolvency.

2. Revenue Enhancement ("Stimulating Metabolism"):
   Develop and implement a clear business plan to increase turnover—this could include marketing initiatives, new client acquisition, or diversifying services.

3. Cost Control ("Reducing Metabolic Load"):
   Review operating expenses and liabilities to identify and reduce unnecessary costs or restructure debt where possible to improve liquidity.

4. Cash Flow Management ("Improving Circulation"):
   Implement strict cash flow monitoring and forecasting to ensure timely payment of liabilities and avoid penalties or insolvency risks.

5. Explore External Support ("Medical Consultation"):
   Engage with financial advisors or business mentors to explore restructuring options or alternative funding sources.

6. Consider Strategic Partnerships or Sales ("Therapeutic Alliances"):
   If internal turnaround is not feasible, explore partnerships, mergers, or sale to stronger entities to preserve business value.

---

Summary

REHOBOTH COACHING LTD is currently in a fragile financial state characterized by negative net assets and minimal liquidity, resembling a patient with chronic capital deficiency and poor circulation. While operationally compliant and active, urgent capital injection and revenue generation are critical to restore financial health. Without intervention, the prognosis risks deterioration towards insolvency.

---