THRIVE CLUB LTD

Executive Summary

THRIVE CLUB LTD shows a stable financial position with positive working capital but limited cash reserves and overdue financial filings, which pose risks to its financial wellness. Addressing liquidity management and regulatory compliance should be priorities to ensure continued operational stability and credibility. Enhanced financial transparency and profitability analysis will support informed decision-making for sustainable growth.

THRIVE CLUB LTD - Analysis Report

Company Number: 12777180

Analysis Date: 2025-07-29 20:19 UTC

Financial Health Assessment for THRIVE CLUB LTD

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1. Financial Health Score: B-

Explanation:
THRIVE CLUB LTD demonstrates a generally stable financial position with positive net current assets and shareholders’ funds. However, the company has overdue accounts filing, limited cash reserves relative to current liabilities, and lacks detailed profitability data publicly available, which signals areas for improvement. The "B-" grade reflects a business that is financially viable but showing early symptoms that require proactive management to maintain health.

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2. Key Vital Signs

Vital Sign	Value (31/07/2021)	Interpretation
Current Assets	£158,036	Adequate level of short-term resources; primarily debtors (trade receivables).
Cash & Cash Equivalents	£17,442	Low cash buffer relative to current liabilities; indicates limited liquidity cushion.
Current Liabilities	£96,343	Obligations due within one year, including trade creditors and corporation tax.
Net Current Assets	£61,693	Positive working capital suggests the company can cover short-term debts with current assets.
Shareholders' Funds	£61,693	Equity backing the business; reflects accumulated reserves and capital.
Overdue Accounts Filing	Yes (accounts due by 30/07/2023 but not filed)	Regulatory compliance risk; may lead to penalties and reputational damage.
Turnover & Profitability	Not disclosed	Lack of published profit and loss statement limits visibility on operational performance.

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3. Diagnosis: Financial Health Analysis

• Healthy Cash Flow Symptoms:
  The company exhibits a positive net current asset position (£61,693), which is a good sign of working capital health — akin to a patient whose blood pressure is stable. The balance sheet is not burdened with long-term liabilities or overdraft, indicating no immediate liquidity crisis.

• Symptoms of Distress:
  The cash on hand (£17,442) is modest compared to current liabilities (£96,343), signaling a potential liquidity “narrow pulse” that could constrict day-to-day operational flexibility. The high proportion of debtors within current assets (£140,594) suggests reliance on timely payments from clients; any delays could worsen cash flow.

• Compliance and Risk Indicators:
  Overdue filing of annual accounts is a “fever” in the regulatory health check—this could escalate into fines or administrative actions, impacting business credibility and access to finance.

• Profitability Unknown:
  Without a published profit and loss account, the company’s profitability status is a “blind spot” in the clinical picture. Profit retention is indicated by reserves, but no detailed insight into revenue trends or cost controls is available.

• Company Size and Industry:
  As a private limited company operating in management consultancy (SIC 70229), the business likely relies on human capital and client contracts rather than fixed assets. The small number of employees (2) aligns with a lean operation but may limit scalability and operational resilience.

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4. Recommendations: Path to Financial Wellness

1. Improve Liquidity Management:

   • Accelerate debtor collections to increase cash reserves.
   • Negotiate better payment terms with suppliers to smooth cash outflows.

2. Regulatory Compliance:

   • Prioritize filing overdue accounts to prevent penalties and maintain stakeholder confidence.
   • Implement a compliance calendar to avoid future overdue filings.

3. Financial Transparency:

   • Consider publishing more detailed financial statements, including profit and loss data, to provide a clearer health snapshot for investors, creditors, and management.

4. Profitability Monitoring:

   • Conduct internal profitability analysis to identify cost drivers and revenue opportunities.
   • Explore diversifying client base or service offerings to strengthen revenue streams.

5. Strengthen Capital Base:

   • Assess opportunities for equity injection or retained earnings reinvestment to build a stronger capital cushion.

6. Scenario Planning:

   • Prepare cash flow forecasts and contingency plans to anticipate and manage potential liquidity shortfalls.

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