SUBLIME ZERO LTD

Executive Summary

Sublime Zero Ltd is a micro-entity with a stable but contracting financial profile. It maintains positive working capital and net assets but has shown a decline in liquidity and asset base over the last year. Conditional credit approval is advised with close monitoring of cash flow and balance sheet metrics to manage risk effectively.

SUBLIME ZERO LTD - Analysis Report

Company Number: 13300224

Analysis Date: 2025-07-20 13:52 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Sublime Zero Ltd demonstrates a stable financial position with positive net assets and net current assets. However, the company is a micro-entity with limited scale and only one employee, which constrains operational capacity and resilience. The recent decline in net assets and current assets from 2023 to 2024 signals slight financial contraction. Given its small size and limited financial history, credit facilities should be modest and monitored closely. Approval is recommended with conditions that include regular financial reviews and limits aligned with the company’s working capital.

2. Financial Strength:
   The balance sheet shows net assets of £21,266 as of 31 March 2024, down from £27,662 the previous year. Fixed assets are minimal (£1,719) and have decreased, reflecting limited investment in long-term assets. Current assets have reduced significantly from £37,564 to £23,360, while current liabilities dropped more sharply from £11,915 to £3,213, improving liquidity ratios. The company maintains positive working capital (£20,147), indicating the ability to cover short-term obligations comfortably. Overall, the balance sheet is sound but shows signs of contraction which warrants cautious credit exposure.

3. Cash Flow Assessment:
   Although detailed cash flow statements are not available, the strong net current assets position suggests adequate liquidity and working capital management. The reduction in current liabilities indicates the company is managing short-term debts prudently. However, the decline in current assets may imply lower cash inflows or increased cash usage. The very small scale of the business and reliance on a single director/employee increases cash flow risk, highlighting the need for monitoring cash conversion cycles and receivables closely.

4. Monitoring Points:

• Track changes in net current assets and net assets to detect any deterioration in financial health.
• Monitor cash flow patterns and payment behaviour to ensure timely servicing of debt and obligations.
• Review any significant changes in creditor days or receivables aging.
• Watch for changes in shareholder funds or capital injections that could affect financial stability.
• Keep an eye on business growth or contraction especially given the company’s one-person operation and micro status.