WEALTH GROWTH HOLDINGS LIMITED

Executive Summary

WEALTH GROWTH HOLDINGS LIMITED currently exhibits financial distress marked by negative net current assets and shareholder equity, signaling liquidity and capital challenges typical of a young company in a capital-intensive sector. While recent growth in assets and staff indicates operational expansion, the rising liabilities and negative equity pose risks to sustainability. Immediate focus on liquidity improvement, capital injection, and cost control is essential to restore financial health and support future growth.

WEALTH GROWTH HOLDINGS LIMITED - Analysis Report

Company Number: 13555719

Analysis Date: 2025-07-19 12:44 UTC

Financial Health Assessment: WEALTH GROWTH HOLDINGS LIMITED

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1. Financial Health Score: D

Explanation:
The company shows signs of financial strain with negative net current assets and net liabilities for the latest year reported. Despite some modest improvement, the overall financial position remains weak for a business incorporated in 2021. This score reflects symptoms of financial distress and limited working capital, indicating the company is currently in a fragile state.

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2. Key Vital Signs: Critical Metrics and Interpretation

Metric	2024 (£)	2023 (£)	Interpretation
Current Assets	52,846	89	Significant increase; indicates better liquidity or asset accumulation.
Current Liabilities	55,442	1,500	Sharp increase; growing short-term obligations may stress cash flow.
Net Current Assets (NCA)	-2,596	-1,411	Negative NCA ("working capital deficit") signals inability to cover short-term debts with assets.
Net Assets (Equity)	-2,596	-1,411	Negative equity suggests accumulated losses or undercapitalisation.
Number of Employees	2	1	Small workforce consistent with micro-entity status but rising payroll obligations.

• Vital Sign Summary: The company’s "cash flow pulse" appears weak. While current assets have increased substantially, liabilities have increased even more, resulting in a negative net current asset position. This is akin to a patient with a rapid heartbeat but low blood pressure—showing some activity but insufficient reserves to sustain normal function.

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3. Diagnosis: Business Financial Health Analysis

• Liquidity Concerns: The negative net current assets indicate the company cannot fully meet its immediate liabilities with available assets. This is a symptom of liquidity stress and may lead to cash flow difficulties.
• Capital Structure: Negative net assets reflect accumulated losses or insufficient capital injections since incorporation, indicating the business is "under the weather" financially.
• Growth and Operations: Increase in current assets and employees could signal attempts to scale operations, but the simultaneous rise in liabilities without positive equity recovery raises concerns about sustainability.
• Micro-Entity Status: As a micro company, filing requirements are minimal and the company likely operates with tight resources, increasing vulnerability to financial shocks.
• Industry Context: Operating in the buying and selling of own real estate (SIC 68100), the company may be asset-heavy and exposed to market risks. However, the small scale and negative equity suggest limited investment in fixed assets or significant debt burden.

Overall, the company demonstrates symptoms of financial distress, with a precarious short-term financial position and negative shareholder equity. The business’s "vital signs" show it is struggling to maintain a healthy financial state.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Improve Liquidity Management:
  Prioritize converting assets into cash or reducing current liabilities to restore positive working capital. Consider negotiating longer payment terms with creditors or securing short-term financing to stabilize cash flow.

• Capital Injection:
  Explore additional equity funding or shareholder loans to improve net asset position and provide a financial cushion.

• Cost Control:
  Monitor payroll and overhead expenses to align with revenue and cash availability. Avoid overextending operational capacity until financial health improves.

• Financial Planning and Forecasting:
  Implement rigorous budgeting and cash flow forecasting to anticipate liquidity needs and avoid unexpected shortfalls.

• Review Business Model and Asset Utilization:
  Assess the real estate portfolio or business activities for underperforming assets. Consider divesting non-core assets to raise cash.

• Engage Professional Advice:
  Seek assistance from financial advisors or turnaround specialists to develop a recovery plan and explore restructuring options if necessary.

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