THOUGHT SPACE PARTNERSHIP LTD

Executive Summary

Thought Space Partnership Ltd displays solid financial health with strong liquidity and positive net assets typical for a micro-entity. Despite a slight reduction in current assets in the latest year, the company maintains a robust ability to meet short-term obligations. To sustain and improve financial wellness, management should monitor cash flow closely and investigate asset changes while continuing to track profitability internally.

THOUGHT SPACE PARTNERSHIP LTD - Analysis Report

Company Number: 13169363

Analysis Date: 2025-07-29 20:53 UTC

Financial Health Assessment: Thought Space Partnership Ltd

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1. Financial Health Score: B

Explanation:
Thought Space Partnership Ltd demonstrates a solid financial footing typical of a micro-entity. The company maintains positive net current assets and net assets with stable shareholder funds. However, a modest decline in current assets and net assets between 2023 and 2024 signals a mild contraction in liquidity. The absence of profit and loss data limits detailed profitability analysis, thus preventing a higher rating. Overall, the company exhibits good financial resilience but should monitor liquidity trends closely.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Current Assets	60,596	Healthy short-term resources, though decreased from £80,147 in 2023—possible cautionary sign.
Current Liabilities	10,654	Manageable short-term obligations; significantly reduced from prior year, improving liquidity ratio.
Net Current Assets (Working Capital)	49,942	Strong positive working capital, indicating ability to cover short-term debts comfortably.
Net Assets (Equity)	49,942	Positive net worth reflecting accumulated resources beyond liabilities.
Share Capital	100	Minimal share capital typical of micro-entities; most equity likely retained earnings.
Employee Count	1	Very small scale, low operating complexity and cost base.

Interpretation:
Current assets to liabilities ratio remains strong at approximately 5.7:1 in 2024, indicating very healthy liquidity. However, the fall in current assets by around 25% from 2023 to 2024 warrants monitoring as a potential symptom of tighter cash flow or reduced receivables/inventory levels. The company shows no signs of distress such as negative working capital or erosion of equity.

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3. Diagnosis

The company’s financial "vital signs" suggest a generally healthy financial status with a clear ability to meet short-term obligations without strain—a key indicator of financial wellness. The reduction in current assets could be likened to a slight decrease in the body's energy reserves; not critical but noteworthy for management to consider underlying causes (e.g., timing of receivables, reduction in cash balances, or inventory changes).

The absence of a profit and loss statement means we cannot evaluate profitability or operational efficiency directly, which is a limitation. However, stable or slightly declining net assets imply the company is maintaining value but not significantly growing retained earnings.

Given its micro-entity status and sole director structure, Thought Space Partnership operates at a simple scale with low complexity risks. The financial "pulse" is steady, but vigilance is needed to ensure the mild decline in assets does not worsen.

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4. Recommendations

1. Enhance Cash Flow Monitoring:
   Regularly review cash inflows and outflows to identify any emerging liquidity constraints early. Consider cash flow forecasting to anticipate periods of tighter liquidity.

2. Investigate Asset Decline:
   Analyze the reasons behind the reduction in current assets—whether due to lower accounts receivable, reduced cash reserves, or other factors. Address any operational causes.

3. Profitability Tracking:
   Although exempt from audit and detailed P&L filing, maintain internal records of income and expenses to monitor profitability and cost control.

4. Build Financial Cushion:
   Aim to gradually increase net assets by retaining earnings or injecting additional capital to strengthen financial resilience against unforeseen downturns.

5. Maintain Compliance and Timely Filings:
   Continue ensuring compliance with Companies House filing deadlines to avoid penalties and maintain good corporate standing.

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