SARAH HANLON COACHING LTD

Executive Summary

Sarah Hanlon Coaching Ltd exhibits significant solvency and liquidity concerns, highlighted by persistent net liabilities and negative working capital across multiple years. Despite timely compliance and stable ownership, limited financial disclosure and ongoing losses warrant careful further investigation. Overall, the company presents a high-risk profile for investors at this stage.

SARAH HANLON COACHING LTD - Analysis Report

Company Number: 13721639

Analysis Date: 2025-07-29 12:51 UTC

1. Risk Rating: HIGH
   The company exhibits significant and persistent negative net assets and net current liabilities, indicating solvency concerns and inability to meet short-term obligations without external support.

2. Key Concerns:

• Persistent Negative Net Assets: The company’s net liabilities have increased from approximately £11.6k in 2021 to £15k in 2025, reflecting ongoing losses or insufficient capital injection.
• Negative Working Capital: Current liabilities substantially exceed current assets in all reporting years, with net current liabilities worsening from £10.7k to nearly £13.9k, raising short-term liquidity risks.
• Micro-Entity Filing and Lack of Audited Accounts: As a micro-entity, the company files abbreviated accounts without audit, limiting visibility into detailed financial performance and potential off-balance sheet risks.

3. Positive Indicators:

• Timely Filing Compliance: Accounts and confirmation statements are up to date with no overdue filings, suggesting management’s attention to regulatory compliance.
• Single Director and PSC Alignment: The sole director is also the 100% beneficial owner, which can facilitate swift decision-making and governance consistency.
• Operating Since 2021: While relatively young, the company has maintained active status for over 3 years, indicating some operational continuity.

4. Due Diligence Notes:

• Examine Profit & Loss History: Obtain detailed profit and loss statements to understand revenue streams, expense structure, and causes of losses.
• Assess Cash Flow and Funding Sources: Investigate whether the company has external funding, director loans, or other support mechanisms enabling survival despite negative equity.
• Review Business Model and Market Position: Clarify the nature of “Other service activities not elsewhere classified” to assess sustainability and potential for turnaround or growth.
• Director’s Plans: Explore any strategic plans the director has shared regarding capital restructuring or business development.
• Check for Related Party Transactions: Given sole ownership, scrutinize transactions between the company and the director or related entities for potential financial support or risks.

Executive Summary:
Sarah Hanlon Coaching Ltd shows clear signs of financial distress, with persistent negative net assets and negative working capital that pose solvency and liquidity risks. While regulatory filings are current and governance is centralized, limited financial transparency and ongoing losses necessitate further detailed review before considering investment. The company’s financial position currently suggests a high risk profile.