SAMUEL MAIN COACHING LTD

Executive Summary

SAMUEL MAIN COACHING LTD demonstrates positive net assets and good working capital, reflecting a solvent and stable financial position. However, a notable decline in turnover and small recurring losses indicate operational stress that requires focused action on revenue growth and cost control to restore profitability. With prudent management, the company can recover its financial vitality and build a stronger foundation for sustainable growth.

SAMUEL MAIN COACHING LTD - Analysis Report

Company Number: 13102811

Analysis Date: 2025-07-20 11:04 UTC

Financial Health Assessment Report: SAMUEL MAIN COACHING LTD

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1. Financial Health Score: C+

Explanation:
The company shows signs of stable but fragile financial health. It maintains positive net assets and working capital, which are encouraging "vital signs" indicating a baseline of financial stability. However, declining turnover and recurring small losses indicate symptoms of operational stress that require attention. Given the micro-entity scale and low financial complexity, the overall health is fair but with vulnerabilities that need addressing.

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2. Key Vital Signs

Metric	2023 Value	Interpretation
Turnover	£41,732	Declined by ~30% from prior years—signals weakening revenue inflow ("reduced pulse").
Profit / (Loss)	-£181	Small loss—"minor symptoms of distress" but not critical yet.
Net Current Assets	£4,266	Positive and healthy working capital indicating ability to cover short-term debts.
Net Assets / Shareholders’ Funds	£5,412	Positive net worth showing company’s residual value after liabilities.
Fixed Assets	£1,046	Modest investment in long-term assets, stable over 3 years.
Staff Costs	£2,254	Reduced significantly from prior year, suggesting cost control or downsizing.
Other Charges	£30,962	High operating expenses relative to turnover, contributing to losses.

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3. Diagnosis

The company exhibits signs of a "stable but weakened cardiovascular system" financially. Positive net assets and net current assets show that the company is solvent and has a buffer to meet short-term liabilities ("healthy blood circulation"). However, the drop in turnover from approximately £59k to £41k in 2023 and the consistent small losses (though minor) suggest underlying operational challenges ("symptoms of distress"). High other charges relative to turnover point to overheads that may be unsustainably high for the current scale of operations.

The absence of employees (average employees = 0) suggests a sole proprietorship or contractor-based model, which aligns with the professional coaching activity. This can limit scalability but also keeps fixed costs low.

The company’s micro-entity status means it has minimal filing requirements and likely limited financial complexity, so the financial snapshot is simplified but still indicative of core health.

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4. Recommendations

1. Revenue Stabilization & Growth:

   • Investigate causes for the 30% revenue decline in 2023. Is it market conditions, client retention, or reduced marketing?
   • Consider targeted marketing or expanding service offerings to regain and grow turnover.

2. Cost Management:

   • Review "other charges" (£30,962) carefully. Identify non-essential expenses that can be trimmed to ease pressure on profitability.
   • Maintain tight control over staff costs, especially if expanding workforce, to avoid increasing losses.

3. Profitability Focus:

   • Aim to return to a modest profit to build reserves and ensure business longevity. Small losses, if prolonged, can erode equity ("weakening heart muscle").
   • Explore pricing strategies or value-added services to improve margins.

4. Cash Flow Monitoring:

   • Maintain and monitor positive net current assets to ensure ongoing liquidity. Avoid situations where liabilities outpace current assets ("cash flow choking").

5. Strategic Planning:

   • Given the micro-entity nature, keep operational complexity manageable. However, plan for incremental growth ensuring expenses are backed by revenue growth to avoid financial strain.

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Executive Summary