ZACHARY DANIELS EOT LIMITED

Executive Summary

Zachary Daniels EOT Limited shows strong financial foundations with significant investments and equity, but persistent negative working capital flags liquidity concerns. While overall sound, the company should focus on improving short-term cash flow and managing current liabilities to ensure continued financial wellness. Prompt attention to liquidity strategies will enhance stability and support future growth prospects.

ZACHARY DANIELS EOT LIMITED - Analysis Report

Company Number: 13804637

Analysis Date: 2025-07-29 19:38 UTC

Financial Health Assessment: ZACHARY DANIELS EOT LIMITED

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1. Financial Health Score: B

This company demonstrates a generally solid financial structure with strong net assets and shareholder funds relative to liabilities. However, the persistent negative net current assets indicate some liquidity strain, warranting attention. The score 'B' reflects a stable but cautious outlook, suggesting the company is fundamentally healthy but with symptoms that require monitoring and management.

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2. Key Vital Signs

Metric	Figure (£)	Interpretation
Fixed Assets (Investments)	4,335,000	Large, stable long-term asset base—foundation of company value.
Current Liabilities	736,172	Debts due within one year; moderate level relative to assets.
Net Current Assets (Working Capital)	-646,992	Negative working capital—a symptom of liquidity stress.
Total Assets less Current Liabilities	3,688,008	Strong asset base after short-term debts.
Creditors > 1 year (Long-term Liabilities)	736,172	Manageable long-term obligations.
Net Assets / Shareholders' Funds	2,951,836	Healthy equity position indicating good financial strength.
Average Employees	7	Small workforce consistent with company scale.

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3. Diagnosis

Vital Signs Analysis:
ZACHARY DANIELS EOT LIMITED carries a substantial fixed asset base entirely in investments (£4.335M), which provides a strong asset "backbone". This is a very positive indicator akin to a patient with strong bones supporting the body structure. The shareholders’ funds and net assets are also robust (£2.95M), showing the company has substantial equity cushioning and is not overly leveraged overall.

Symptoms of Distress:
The company has persistent negative net current assets (~-£647k) for multiple years, indicating current liabilities exceed current assets. This is a classic “cash flow malaise” symptom, suggesting the company may face difficulty meeting short-term obligations without raising cash or restructuring debts. While the overall financial "skeleton" is strong, the circulatory system (cash flow and liquidity) shows signs of stress.

Liquidity Position:
Negative working capital can arise in companies with long payment cycles or significant short-term liabilities. Since the company is classified as a non-trading entity (SIC 74990), it may not generate operational cash flow currently, relying on investments or other funding. This warrants monitoring to ensure liquidity does not deteriorate further.

Other Considerations:

• The company is private, limited by guarantee with no share capital, which might mean it operates in a specific sector such as an employee ownership trust or social enterprise.
• The company is not in liquidation or administration, and filings are up to date, indicating compliance health.
• The director changes suggest some management evolution but no red flags in governance.
• The unaudited abridged accounts limit detailed profitability analysis, but the balance sheet strength is clear.

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4. Recommendations

1. Improve Liquidity Management:
   Develop a clear plan to convert some fixed investments into cash or working capital to alleviate negative net current assets. Strategies may include restructuring short-term debt or negotiating payment terms with creditors.

2. Cash Flow Monitoring:
   Implement rigorous cash flow forecasting to anticipate liquidity crunches. Monitor creditor payment deadlines closely to avoid default risks.

3. Explore Revenue or Funding Sources:
   Given the non-trading status, consider if the company should initiate trading activities or secure stable funding lines to support ongoing expenses and working capital needs.

4. Governance and Reporting:
   Maintain timely filing and transparent reporting. Although currently unaudited, consider audit if growth or complexity increases to enhance stakeholder confidence.

5. Engage Professional Advice:
   Seek financial advisory to explore restructuring options if liquidity stress worsens, ensuring sustainable financial health.

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