KRIS ZWAIG LTD

Executive Summary

KRIS ZWAIG LTD has made significant strides in improving its liquidity and solvency over the past year, reversing earlier distress symptoms. The company maintains positive working capital and net assets, reflecting a healthier financial position, though the scale remains modest. Continued focus on cash flow management and prudent financial planning will be crucial to sustaining this recovery and supporting future growth.

KRIS ZWAIG LTD - Analysis Report

Company Number: 13536999

Analysis Date: 2025-07-20 17:08 UTC

Financial Health Assessment for KRIS ZWAIG LTD

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1. Financial Health Score: B-

Explanation:
KRIS ZWAIG LTD shows signs of financial recovery and stability in its latest accounting period but remains a small, relatively young company with modest financial resources. The company exhibits improving working capital and net asset position, indicating healthier liquidity and solvency compared to prior years. However, the scale of operations and asset base remains small, suggesting limited financial buffer against shocks. Hence, a B- grade reflects a cautiously positive outlook with room for strengthening financial resilience.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Fixed Assets	388	775	Declined fixed assets; modest long-term investment footprint.
Current Assets	1,568	0	Significant increase in current assets (cash/debtors), indicating improved liquidity.
Current Liabilities	659	36	Increase in short-term obligations; manageable relative to assets.
Net Current Assets (Working Capital)	909	-36	Healthy positive working capital in 2024 vs. negative previously, indicating better short-term financial health.
Total Assets Less Current Liabilities	1,297	739	Improved asset coverage of liabilities, reflecting better solvency.
Net Assets / Shareholders’ Funds	696	138	Positive and growing equity base, moving from small positive net worth.

Interpretation of Vital Signs:

• Healthy Cash Flow Indication: The jump in current assets combined with positive net current assets suggests the company has improved its cash or receivables position, critical for meeting short-term obligations.
• Improved Solvency: Net assets turning more positive from previous years signals the company is moving out of a distress phase and strengthening its balance sheet.
• Asset Utilisation: The reduction in fixed assets hints at either disposal of long-term assets or amortisation, which may reflect operational adjustments.
• Increased Short-Term Liabilities: Though current liabilities have increased, the company has sufficient current assets to cover these, indicating manageable liquidity pressure.

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3. Diagnosis: Financial Condition

KRIS ZWAIG LTD is showing clear signs of recovery and stabilisation from earlier periods of financial strain. Initially, the company reported negative net assets and a working capital deficit, indicating distress symptoms such as inadequate liquidity and solvency challenges. Over the last fiscal year, the company has reversed these symptoms, achieving positive working capital and net assets, which are critical indicators of a healthier financial "pulse." The presence of a single director/shareholder with full control suggests agility in decision-making but also potential concentration risk.

The company operates within the micro-entity accounting regime, limiting the level of detailed financial disclosure. While this makes granular diagnosis challenging, the available data shows prudent management of short-term finances and a cautious approach to asset holdings.

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4. Recommendations for Financial Wellness Improvement

• Maintain and Grow Working Capital: Continue building current assets (especially cash reserves or receivables) to ensure robust short-term liquidity and buffer against unforeseen expenses.
• Monitor and Control Current Liabilities: Keep tight control on short-term debts and accruals to avoid liquidity stress, especially given the recent increase in liabilities.
• Investment in Fixed Assets: Evaluate the need for fixed asset investments carefully to support business growth without overextending finances. Consider leasing or outsourcing to conserve capital.
• Financial Planning and Forecasting: Implement regular cash flow forecasting and scenario planning to anticipate financial needs and adjust strategy proactively.
• Diversify Control and Governance: While single ownership enables swift decisions, consider strengthening corporate governance and possibly expanding management input to reduce risk concentration.
• Prepare for Growth: As a micro-entity, the company should plan for scalable financial systems and compliance as it grows beyond micro thresholds, ensuring smooth transitions.
• Professional Financial Advice: Engage with financial advisors or accountants to optimize tax planning, funding options, and financial structuring for sustainable growth.

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