THRESHOLD WEALTH MANAGEMENT LIMITED

Executive Summary

Threshold Wealth Management Limited shows a strong liquidity position and steadily growing equity, reflecting sound short-term financial health and effective cash management. The company operates leanly with a single director and no debt, minimizing financial risk but warranting attention to operational continuity. Strengthening profitability analysis and cash flow planning will support sustainable growth and long-term financial wellness.

THRESHOLD WEALTH MANAGEMENT LIMITED - Analysis Report

Company Number: 12921768

Analysis Date: 2025-07-20 12:48 UTC

Financial Health Assessment for Threshold Wealth Management Limited

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1. Financial Health Score: B

Explanation:
Threshold Wealth Management Limited shows a solid and improving financial position with positive working capital and growing equity. The company demonstrates healthy liquidity, with cash reserves comfortably covering short-term liabilities, indicating good "cash flow health." However, given the relatively small scale of operations and limited complexity in assets and liabilities, there is room to strengthen profitability and operational resilience as the business matures.

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2. Key Vital Signs

Metric	2023 (£)	2022 (£)	Interpretation
Current Assets	18,372	6,630	Strong increase, mainly driven by cash, indicating improving liquidity and cash management.
Cash	18,272	6,530	Cash is the main component of current assets, showing a healthy cash buffer to meet obligations.
Debtors	100	100	Minimal trade receivables, suggesting efficient collection or low credit sales risk.
Current Liabilities	5,017	2,658	Increase in short-term creditors, but comfortably covered by cash reserves.
Net Current Assets	13,355	3,972	Positive and growing working capital, indicating good short-term financial stability.
Shareholders' Funds	13,355	3,972	Equity has grown significantly, reflecting retained earnings and business value increase.
Share Capital	100	100	Nominal share capital, standard for a small private company.
Employee Count	1	1	Sole director/operator, indicating a lean operation.

Additional Notes:

• The company operates in "Activities of insurance agents and brokers" (SIC 66220), a service-based sector generally requiring low capital investment and benefiting from steady cash flow if client retention is strong.
• No long-term liabilities or fixed assets reported, indicating a low fixed cost base and limited financial leverage.
• Accounts indicate exemption from audit, typical for small companies, but limits external assurance.

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3. Diagnosis

Threshold Wealth Management Limited exhibits a "healthy cash flow" symptom with sufficient cash to cover immediate debts and a rising net current asset position. The company’s balance sheet resembles a youthful but stable patient: low complexity, no debt burden, and steadily growing equity indicating retained profits or capital injections.

The low level of trade debtors and reliance on cash suggest disciplined cash collection and tight control over credit risk. The increase in creditors and corporation tax liabilities is not alarming given the cash buffer, but the company should ensure timely payment to avoid financial distress symptoms.

Being a single-employee company with one director means operational risks are concentrated, and business continuity could be vulnerable without key person insurance or succession planning.

No significant financial distress indicators (e.g., negative working capital, accumulated losses) are apparent. However, the absence of detailed profit and loss data limits insight into profitability trends, cost control, and margins.

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4. Recommendations

1. Profitability Monitoring:
   Implement more detailed internal reporting on revenues, expenses, and profit margins. Understanding the business "vital signs" beyond the balance sheet will help detect early "symptoms" of operational inefficiency or market pressure.

2. Cash Flow Forecasting:
   Continue maintaining strong cash reserves but develop rolling cash flow forecasts to anticipate and manage tax payments and creditor settlements smoothly.

3. Business Continuity Planning:
   Given the sole director/operator model, consider policies for key person risk mitigation, such as insurance or contingency plans, to ensure operational resilience.

4. Growth Strategy:
   Explore avenues for controlled growth—such as expanding client base or service offerings—to increase turnover while maintaining prudent financial management.

5. Professional Advice:
   As the company grows, consider periodic external review or audit to provide assurance to stakeholders and enhance financial discipline.

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