SYNERGETIC COACHING LIMITED

Executive Summary

Synergetic Coaching Limited shows signs of financial strengthening with growing net assets and improved liquidity, but remains reliant on significant director loans and has net current liabilities. Conditional credit approval is recommended with close monitoring of liquidity, reduction of short-term debt, and debtor management to ensure sustainable repayment capacity.

SYNERGETIC COACHING LIMITED - Analysis Report

Company Number: 13481197

Analysis Date: 2025-07-29 16:54 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Synergetic Coaching Limited is a young private limited company with modest but improving net asset position and growing current assets. However, it carries significant short-term liabilities, particularly large director loans (£95,651) that are interest-bearing at 10% p.a. The company has net current liabilities of £34,102 as of March 2024, though this is an improvement from the prior year. Given the reliance on director funding and ongoing net current liability position, credit approval should be conditional on monitoring liquidity and further reduction of short-term debt exposure.

2. Financial Strength:

• Net assets improved from £3,201 in 2023 to £15,197 in 2024, indicating gradual strengthening of equity base.
• Fixed assets are modest (£50,049) and primarily intangible (£46,102), reflecting investment in business support services.
• The balance sheet shows negative working capital (net current liabilities) of £34,102 but down from £52,083 the previous year, signalling improving but still stretched short-term financial health.
• The high level of director loans comprising ~83% of current liabilities indicates dependency on related-party funding rather than external creditors.
• Profit and loss reserves increased substantially, suggesting retained earnings growth and some business profitability.

3. Cash Flow Assessment:

• Cash at bank increased from £33,985 to £48,111, a positive liquidity indicator.
• Trade debtors grew from £6,422 to £17,611, which may represent increasing sales but also a potential risk in collections.
• The company’s current liabilities are substantial, largely due to amounts owed to directors, which carry a 10% interest charge, adding to financial burden.
• The improvement in net current liabilities and cash balances suggests better working capital management but the company remains reliant on director funding and careful cashflow control to meet obligations.

4. Monitoring Points:

• Reduction of director loans and movement towards more diversified and external funding sources.
• Continued improvement in working capital, aiming for positive net current assets.
• Trade debtor ageing and collection efficiency to ensure cash inflows match operational needs.
• Profitability trends and operating cash flow to confirm sustainable business growth.
• Interest expense impact on cash flow from director loans and repayment plans.
• Regular review of management’s going concern assessment and business resilience.