ZAIB ENTERPRISE (UK) LIMITED

Executive Summary

ZAIB ENTERPRISE (UK) LIMITED is currently facing financial distress characterized by negative working capital and shareholders’ funds, indicating liquidity and solvency challenges. Immediate action to improve cash flow and reduce liabilities is essential to stabilize the company’s financial condition. Medium to long-term focus should be on revenue growth and strengthening the financial base to restore overall health and sustainability.

ZAIB ENTERPRISE (UK) LIMITED - Analysis Report

Company Number: 14408950

Analysis Date: 2025-07-29 16:08 UTC

Financial Health Assessment for ZAIB ENTERPRISE (UK) LIMITED

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1. Financial Health Score: D

Explanation:
ZAIB ENTERPRISE (UK) LIMITED currently exhibits clear symptoms of financial distress. The company’s net liabilities, negative net current assets (working capital deficit), and negative shareholder funds indicate an unhealthy financial condition. Being a micro-entity with limited assets and no employees, the company’s financial structure is fragile and requires immediate attention.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	239	Minimal long-term asset base; typical for start-ups.
Current Assets	10,115	Limited liquid resources available to settle short-term liabilities.
Current Liabilities	14,740	Short-term debts exceed current assets, causing liquidity strain.
Net Current Assets	-4,625	Negative working capital—symptom of cash flow problems.
Total Assets less Current Liabilities	-4,386	Overall asset base insufficient to cover short-term debts.
Net Assets / Shareholders' Funds	-4,899	Negative equity indicates the company owes more than it owns; a sign of financial distress.

Additional Observations:

• No employees, indicating low operational scale or reliance on outsourcing.
• Director owns 75-100% shares and controls voting rights, suggesting centralized decision-making but also potential risk if external oversight is limited.
• The company operates in bookkeeping, accounting, and internet retail sales — sectors where cash flow management is critical.

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3. Diagnosis

The company is currently in a precarious financial state, exhibiting “symptoms” akin to a patient with poor circulation and insufficient vital nutrients:

• The negative net current assets indicate the company may struggle to meet its short-term obligations without additional cash inflows or financing. This is comparable to a patient whose blood pressure is too low to sustain normal functions.
• The negative shareholders’ funds (equity) reflect that the company’s liabilities exceed its assets, signaling potential insolvency risk if the condition persists. This is akin to an organ failure warning sign.
• The absence of employees and minimal fixed assets suggest the company is either very early stage or operating with minimal infrastructure, which may limit its ability to scale or generate sufficient revenue to cover liabilities.
• The current financial data does not indicate profitability or retained earnings to offset these deficits, though detailed profit and loss data is not provided.

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4. Recommendations

To improve the financial wellness of ZAIB ENTERPRISE (UK) LIMITED, consider the following targeted actions:

Short-term (Immediate care):

• Improve liquidity: Inject additional working capital through director loans, equity infusion, or external financing to cover short-term liabilities. This is akin to providing emergency fluids to stabilize a patient.
• Manage payables: Negotiate extended payment terms with creditors to ease immediate cash flow pressure.
• Review overheads: Minimise expenses to conserve cash, including any discretionary spending.

Medium-term (Rehabilitation):

• Increase revenue: Focus on business development in core services (bookkeeping, accounting, retail sales) to generate healthy cash flow.
• Financial monitoring: Implement regular cash flow forecasting and budget controls to anticipate and prevent liquidity shortages.
• Strengthen financial structure: Aim to reduce liabilities and build positive net assets over time, restoring “financial health.”

Long-term (Wellness maintenance):

• Consider strategic partnerships or investment: To strengthen capital base and support growth.
• Governance improvement: With a single director/shareholder, consider adding financial oversight or external advice to avoid governance risks and improve decision-making quality.

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