PETER THOMPSON LIMITED

Executive Summary

PETER THOMPSON LIMITED shows early-stage financial stress with negative working capital and equity, relying on director support to continue operations. Immediate focus on improving liquidity and cost control is essential to stabilize and strengthen the company’s financial health.

PETER THOMPSON LIMITED - Analysis Report

Company Number: 15578283

Analysis Date: 2025-07-29 16:27 UTC

Financial Health Assessment: PETER THOMPSON LIMITED

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1. Financial Health Score: D

Explanation:
PETER THOMPSON LIMITED exhibits signs of financial distress at this early stage of its life cycle. The company has negative net current assets and shareholders’ funds, indicating a liquidity shortfall and an erosion of equity. While this may be typical for a newly incorporated micro-entity starting operations, it is a symptom that requires close management attention to avoid worsening financial health. The going concern statement by the director suggests reliance on external support, which is a risk factor.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	610	Very low level of liquid assets, indicating limited cash or receivables.
Current Liabilities	1,794	Obligations due within one year exceeding liquid resources.
Net Current Assets	-1,184	Negative working capital, a key symptom of liquidity distress.
Total Assets Less Current Liabilities	-1,184	Negative net assets, showing liabilities outweigh assets.
Shareholders’ Funds	-1,184	Negative equity position, indicating accumulated losses or initial funding gap.
Average Number of Employees	1	Small scale of operations, typical for micro-entities starting up.

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3. Diagnosis

The company’s financial "vital signs" reveal symptoms consistent with a start-up entity that is experiencing initial liquidity challenges and has negative equity. The negative net current assets mean the company does not currently have enough short-term resources to cover its immediate liabilities, akin to a patient whose "cash flow pulse" is weak. Negative shareholders’ funds indicate that the company’s liabilities exceed its assets, a condition that can be thought of as "financial anemia."

The director’s note on going concern reflects a reliance on continued director support to maintain operations, which is analogous to ongoing medical intervention to stabilize a patient. The small size, micro-entity status, and very recent incorporation (March 2024) mean that early-stage losses and tight cash flow are not uncommon, but they require careful monitoring.

The company operates in management consultancy (SIC 70229), which typically has low fixed asset requirements but depends heavily on timely cash inflows and prudent cost control.

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4. Recommendations

Immediate Actions:

• Strengthen Liquidity: Inject additional working capital or arrange short-term financing to cover current liabilities comfortably. This is like administering fluids to a patient with low blood volume to stabilize their condition.

• Cash Flow Management: Implement strict cash flow forecasting and control mechanisms to monitor incoming and outgoing payments closely. Prioritize collecting receivables and managing payables.

• Cost Control: Keep operating expenses minimal until a steady revenue stream is established. Avoid unnecessary expenditures that could worsen the liquidity crunch.

Medium-Term Actions:

• Build Equity Base: Consider additional equity investment from shareholders or external investors to improve the balance sheet and reduce financial risk.

• Revenue Growth: Focus on winning consultancy contracts or clients to generate stable income streams, improving the company’s financial "vitality."

• Monitor Financial Health Regularly: Establish monthly financial reviews to detect any worsening symptoms early and respond proactively.

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Executive Summary

PETER THOMPSON LIMITED is a newly formed micro-entity exhibiting early symptoms of liquidity strain and negative equity, which are typical but critical issues needing immediate attention. The company depends on director support to maintain going concern status, highlighting the need for swift measures to bolster cash reserves and control costs. With prudent financial management and capital support, the company can stabilize its finances and build a foundation for sustainable growth.