QZ ELECTRICAL LTD

Executive Summary

QZ Electrical Ltd is a recently established micro-entity with a weak financial base, evidenced by negative net current assets and shareholders’ funds. The company currently lacks sufficient liquidity and operational scale to support credit risk. Without improvement in financial metrics or external support, credit extension is not recommended at this time.

QZ ELECTRICAL LTD - Analysis Report

Company Number: 14471411

Analysis Date: 2025-07-20 11:51 UTC

1. Credit Opinion: DECLINE
   QZ Electrical Ltd is a newly incorporated micro-entity with less than two years of trading history and an unaudited balance sheet showing net liabilities of £666. The company currently has negative working capital, indicating insufficient short-term assets to cover immediate liabilities. Without evidence of profitability, cash inflows, or external funding, the ability to meet debt obligations is highly uncertain. The absence of employees other than the director and minimal current assets further weakens operational capacity. Therefore, extending credit would entail high risk.

2. Financial Strength:
   The balance sheet reveals current assets of £1,028 against current liabilities of £5,974, resulting in net current liabilities of £666. No fixed assets are reported, and shareholders’ funds are negative at £666. These figures indicate a fragile financial position with no buffer to absorb shocks or fund growth. The company’s micro-entity status limits available financial disclosures, but the net liability position and lack of tangible assets demonstrate weak financial health.

3. Cash Flow Assessment:
   Cash or equivalents are minimal, and working capital is negative, posing liquidity challenges. The company has no employees besides the director, suggesting limited operational activity or reliance on the owner’s personal resources. There is no evidence of cash flow from operations or external financing. The current creditor balance exceeds current assets, raising concerns over the company’s ability to meet short-term obligations without default or additional capital injection.

4. Monitoring Points:

• Improvement or deterioration in net current assets and shareholders’ funds in future filings
• Evidence of revenue growth and profitability in subsequent accounts
• Cash flow statements (when available) to assess operational liquidity
• Director’s credit and payment conduct records for any adverse developments
• Any new financing or capital contributions to improve balance sheet strength