FAST Z DEVELOPERS LTD

Executive Summary

FAST Z DEVELOPERS LTD is a newly established real estate company with significant fixed asset investment but minimal equity and high long-term liabilities. While short-term liquidity appears adequate, the company’s creditworthiness depends on its ability to generate operating cash flow to service debt. Conditional credit approval is recommended, with ongoing monitoring of financial performance and liquidity.

FAST Z DEVELOPERS LTD - Analysis Report

Company Number: 14705483

Analysis Date: 2025-07-29 18:02 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   FAST Z DEVELOPERS LTD is a newly incorporated private limited company (March 2023) operating in the real estate sector (SIC 68100 and 68209). The company holds tangible fixed assets valued at £180,757 and modest cash reserves (£46,305). However, it carries a significant long-term liability (£221,000) which nearly offsets total assets less current liabilities, resulting in minimal net equity (£1,467). The short operating history and low net asset base increase credit risk. Approval is conditional on the director’s demonstrated ability to service debt from operating cash flows and/or additional capital injection. Monitoring of liquidity and covenant compliance is essential given the leverage.

2. Financial Strength
   The balance sheet shows fixed assets of £180,757, suggesting investment in property or land, which aligns with its business activity. Current assets are limited to cash (£46,305), with minimal short-term creditors (£4,595), resulting in positive net current assets (£41,710). However, the company has substantial creditors due after one year (£221,000), indicating reliance on external financing. Shareholders’ funds are very low (£1,467), reflecting limited retained earnings or equity capital. The absence of depreciation on fixed assets may indicate recent acquisition or valuation approach. Overall, the financial structure is highly leveraged with limited equity cushion.

3. Cash Flow Assessment
   Cash reserves of £46,305 appear sufficient to cover immediate short-term liabilities (£4,595), indicating adequate short-term liquidity. However, the company currently employs no staff, showing very low operating expenses or activity to date. The large long-term liability suggests future debt servicing commitments that must be met from operating income or refinancing. The lack of historical profit and loss data precludes assessment of cash generation capacity. The company’s ability to generate positive cash flow from property letting or sales will be critical to meet debt obligations.

4. Monitoring Points

• Track operating performance and cash flow generation against debt servicing requirements.
• Monitor changes in net assets and equity, especially any capital injections or retained earnings.
• Watch liquidity ratios closely, particularly current ratio and quick ratio, as the business scales.
• Review management’s strategy for leveraging fixed assets and managing long-term creditors.
• Confirm timely filing of accounts and confirmation statements to avoid compliance risk.
• Assess any changes in director or PSC status that might impact governance or control.