ZANKO BARBER LTD

Executive Summary

ZANKO BARBER LTD, a micro-sized startup in the hairdressing sector, currently shows a modest asset base but faces liquidity challenges due to negative working capital. While regulatory compliance is good, the company must prioritize cash flow management and build a financial buffer to stabilize and support future growth.

ZANKO BARBER LTD - Analysis Report

Company Number: 14762055

Analysis Date: 2025-07-19 12:21 UTC

Financial Health Assessment for ZANKO BARBER LTD (As at 31 March 2024)

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1. Financial Health Score: C

Explanation:
ZANKO BARBER LTD is a newly established micro-entity with modest financial figures indicative of a very early stage business. The company holds positive net assets and shareholder funds, but its working capital position shows a slight shortfall, signaling caution. This score reflects a company in the incubation phase with potential but needing careful monitoring and improvement in liquidity.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	1,048	Small investment in long-term assets, typical for a startup in service industry.
Current Assets	765	Limited short-term resources, mainly cash or receivables; quite low for sustaining operations.
Current Liabilities	1,144	Obligations due within 1 year exceed current assets, causing a net current liabilities of £379.
Net Current Assets	-379	Negative working capital “symptom” indicating potential liquidity stress if not managed well.
Total Assets less Current Liabilities	669	Positive, showing overall assets exceed short-term debts when adjusted for fixed assets.
Net Assets / Shareholders’ Funds	669	Modest equity base, reflecting initial capital or retained earnings; stable but minimal buffer.

Other Considerations:

• Average employees: 3, indicating a small operational scale.
• No overdue filings: good compliance “vital sign.”
• Sole director and 100% ownership by Mr. Soran Abdullah Auezi: centralized control, which can be agile but risky if not diversified.

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3. Diagnosis

ZANKO BARBER LTD presents the financial profile of a micro-sized startup primarily engaged in hairdressing and beauty treatments. The company’s financials show:

• Liquidity Strain (Working Capital): Negative net current assets (-£379) suggest the company may face challenges meeting short-term obligations purely from operating cash flow. This is a classic “cash flow congestion” symptom common in early-stage businesses that have yet to scale revenue or optimize cash cycle management.
• Asset Base: Fixed assets are minimal (£1,048), consistent with a service business relying more on human capital than equipment-heavy operations.
• Equity Position: Positive net assets (£669) reflect initial funding or retained earnings, establishing a base “immune system” against insolvency risk.
• Compliance and Governance: No overdue filings and a clear director appointment status indicate good corporate governance and regulatory health.
• Size and Scale: Micro-entity classification with three employees suggests modest operations and likely limited market reach currently.

Overall, the company shows early-stage vitality but exhibits “fragile circulation” in cash flow and working capital management, which needs attention to avoid distress.

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4. Recommendations

To improve financial wellness and strengthen the company’s “financial heartbeat,” consider the following steps:

• Improve Liquidity Management:

  • Tighten credit control and accelerate receivable collections to boost current assets.
  • Negotiate longer payment terms with suppliers where possible to ease cash outflows.

• Build Working Capital Cushion:

  • Inject additional equity or secure a short-term loan facility to cover the negative working capital gap and prevent liquidity shocks.

• Monitor Cash Flow Closely:

  • Implement regular cash flow forecasting to anticipate and manage periods of tight liquidity.
  • Maintain a cash reserve buffer to absorb operational fluctuations.

• Grow Revenue and Profit Margins:

  • Expand client base through marketing to increase sales volume.
  • Review pricing strategy and service offerings to enhance profitability.

• Maintain Regulatory Compliance:

  • Continue timely filings and corporate governance to avoid penalties and maintain business credibility.

• Consider Operational Efficiency:

  • Evaluate staffing and overhead costs relative to revenue to ensure sustainable cost structure.

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Summary

ZANKO BARBER LTD is a nascent micro-entity with a positive equity base but negative working capital, signaling early liquidity strain typical of startups. The company’s financial health score of C reflects this cautious outlook, highlighting the need to strengthen cash flow management and build a working capital buffer. With focused operational improvements and careful financial stewardship, the business can improve its vitality and progress toward sustainable growth.