TOWARDS TOTAL WELLNESS LIMITED

Executive Summary

Towards Total Wellness Limited demonstrates significant solvency and liquidity risks, evidenced by persistent negative equity and net current liabilities alongside minimal cash reserves. While regulatory compliance is satisfactory and governance appears stable, the company’s financial position raises concerns about its operational sustainability without external support or a turnaround. Further investigation into its business fundamentals and cash flow outlook is advised prior to investment consideration.

TOWARDS TOTAL WELLNESS LIMITED - Analysis Report

Company Number: 13141568

Analysis Date: 2025-07-29 20:52 UTC

1. Risk Rating: HIGH
   The company exhibits persistent negative net assets and net current assets over multiple years, indicating solvency concerns. Cash reserves are minimal and declining, with current liabilities exceeding current assets consistently, suggesting liquidity difficulties.

2. Key Concerns:

• Negative Equity Position: Shareholders’ funds remain negative (-£541 as of Jan 2024), showing accumulated losses and potential insolvency risk.
• Liquidity Shortfall: Cash on hand is extremely low (£161 in Jan 2024) compared to current liabilities (£702), implying limited capacity to meet short-term obligations.
• Operational Sustainability: The company has been operating with negative net current assets since inception, indicating ongoing financial strain and potential challenges in funding operations or growth.

3. Positive Indicators:

• Compliance Status: Accounts and confirmation statements are filed on time, with no overdue filings or penalties noted, reflecting sound regulatory compliance.
• Small Scale Operations: The company employs only one person and qualifies for the small companies regime, which may reduce operational complexity and overheads.
• Stable Directorship: The sole director has held position since incorporation, potentially indicating stable governance.

4. Due Diligence Notes:

• Investigate the company’s business model and revenue generation to understand causes of sustained losses and prospects for profitability.
• Review cash flow statements and forecasts (if available) to assess future liquidity and operational viability.
• Clarify any contingent liabilities or off-balance-sheet obligations that may exacerbate financial risk.
• Understand any shareholder or director support (e.g., loans, capital injections) that may sustain the business despite negative net assets.
• Assess the impact of the negative equity position on supplier and creditor relationships and any risk of enforcement actions.