Z NETWORK SYSTEMS LTD

Executive Summary

Z NETWORK SYSTEMS LTD currently maintains a stable financial position with positive working capital and net assets, indicative of healthy liquidity and solid foundational capital. As a micro-sized start-up, it shows no immediate financial distress but should focus on cash flow monitoring and profitability tracking to support sustainable growth. Timely compliance and strategic planning will be key to strengthening its financial wellness moving forward.

Z NETWORK SYSTEMS LTD - Analysis Report

Company Number: 14654071

Analysis Date: 2025-07-29 16:30 UTC

Financial Health Assessment for Z NETWORK SYSTEMS LTD

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1. Financial Health Score: B

Explanation:
Z NETWORK SYSTEMS LTD demonstrates a stable and sound financial footing as a micro-entity in its first year of operation. With positive net current assets and net assets, the company shows no immediate signs of financial distress. However, as a newly incorporated company with limited financial history and modest asset base, there is room for growth and improved liquidity management.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	31,055	Healthy short-term assets (cash, receivables) available to meet immediate obligations.
Current Liabilities	12,215	Obligations due within one year; manageable relative to current assets.
Net Current Assets	18,840	Positive working capital, indicating liquidity is sufficient to cover short-term liabilities.
Net Assets (Shareholders' Funds)	18,840	Company’s total equity; indicates initial capital invested remains intact.
Average Number of Employees	2	Small operational scale consistent with micro-entity status.
Filing Status	Up to date	No overdue accounts or confirmation statements, reflecting good compliance health.

Interpretation of Vital Signs:
The company exhibits "healthy cash flow" proxies with a net current asset surplus, implying it can comfortably meet near-term debts. The positive net assets and shareholder funds demonstrate a stable capital base, essential for early-stage business resilience. The absence of overdue filings signals good governance and administrative discipline.

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3. Diagnosis

Z NETWORK SYSTEMS LTD is in a "stable and healthy" financial condition typical for a micro-sized startup in the IT consultancy sector. The positive net working capital acts like a healthy pulse, confirming liquidity strength and operational capability. The company’s controlled size, modest liabilities, and initial capital investment provide a solid foundation but also reflect early-stage limitations in scale and financial depth. There are no symptoms of financial distress such as negative working capital, excessive liabilities, or delayed statutory compliance.

However, the company’s financial data is limited to a single accounting period, and the absence of a profit and loss account restricts insight into profitability and revenue trends—key for assessing long-term sustainability.

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4. Recommendations

• Cash Flow Monitoring: Maintain rigorous cash flow oversight to ensure liquidity remains strong as the company grows. Early-stage businesses can face "cash flow stress" if receivables or payables become unbalanced.

• Profit and Loss Reporting: Although not mandatory for micro entities, consider preparing internal profit and loss statements to track profitability and operational efficiency over time.

• Growth Strategy: Explore opportunities to increase turnover and asset base prudently to transition from micro to small company status, which may enable broader financing options.

• Governance and Compliance: Continue timely filing of accounts and confirmation statements to avoid penalties and maintain stakeholder confidence.

• Risk Management: As the company expands, assess and mitigate risks related to credit, market, and operational exposures to preserve financial health.

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