4Z HOLDINGS LTD

Executive Summary

4Z Holdings Ltd exhibits ongoing financial deterioration with negative net assets and working capital deficits, reflecting poor liquidity and insolvency risk. The absence of employees and operating revenues further undermines its ability to service debt, leading to a recommendation to decline credit facilities. Close monitoring of any operational changes or recapitalisation efforts is advised before reconsidering credit exposure.

4Z HOLDINGS LTD - Analysis Report

Company Number: 12477908

Analysis Date: 2025-07-20 16:27 UTC

1. Credit Opinion: DECLINE
   4Z Holdings Ltd shows persistent negative net assets and working capital deficits over the last five years, indicating ongoing financial distress and insufficient equity buffer. The company is unable to cover current liabilities, reflecting poor liquidity and limited capacity to service new credit or repay existing obligations. No turnover or profitability data is provided, but the absence of employees and minimal fixed assets suggest no active trading or revenue generation, increasing credit risk substantially.

2. Financial Strength:
   The company’s balance sheet reveals net liabilities of £1,439 as of 29 February 2024, worsening from £1,199 the prior year. Current liabilities stand at £1,207 against negligible current assets, resulting in negative net current assets (working capital) of £-1,207. Fixed assets are minimal (£7) and have remained stagnant, indicating no capital investment. Share capital is nominal (£2), providing no meaningful equity support. This weak financial position signals insolvency risk and inadequate capital structure to absorb losses or fund operations.

3. Cash Flow Assessment:
   With zero employees and no reported income or trading activity, the company likely has no operating cash inflows. The increasing current liabilities versus stagnant assets imply cash outflows or obligations exceeding available liquid resources. Negative working capital suggests the company may struggle to meet short-term liabilities as they fall due. Lack of cash reserves or receivables further underscores liquidity insufficiency.

4. Monitoring Points:

• Monitor for any significant changes in current liabilities or asset base that could improve liquidity.
• Watch for evidence of business activity or revenue generation to assess turnaround potential.
• Review director actions or plans to recapitalise or restructure the company’s finances.
• Track timely filing of accounts and confirmation statements to ensure regulatory compliance.