Company Number: NI696932

Analysis Date: 2025-07-29 19:11 UTC

Financial Health Assessment of ZEBAS SERVICES LTD as at 31 May 2024

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1. Financial Health Score: B

Explanation:
ZEBAS SERVICES LTD demonstrates solid financial footing for a micro-entity in its first year of operation. The company shows positive net current assets and healthy shareholders’ funds relative to its size, reflecting a stable balance sheet. However, the absence of profit and loss details and the very early stage of the business lifecycle suggest cautious optimism—there is room for strengthening operational cash flow and profitability visibility. Overall, the company is in good financial health but still in the early "growth and establishment" phase.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	39,701	Indicates investment in long-term operational resources (equipment, property), a positive sign.
Current Assets	116,087	Shows accessible short-term resources including cash and receivables, supporting liquidity.
Current Liabilities	84,701	Short-term debts are moderately high but manageable given current assets.
Net Current Assets	31,386	Positive working capital, indicating the company can cover short-term obligations comfortably.
Shareholders’ Funds (Equity)	71,087	Healthy equity base reflecting net assets; company retains value for owners/shareholders.
Number of Employees	9	Moderate workforce size for a micro company, indicating operational activity.

Interpretation:

• The positive net current assets show a "healthy cash flow pulse" in terms of liquidity, meaning the company is not facing immediate cash flow distress.
• Fixed assets investment reflects commitment to operational capacity, a good sign for sustainable business functions.
• The balance between current assets and liabilities suggests the company can meet its short-term debts without strain.
• Equity levels indicate the company is not overly reliant on external financing, reducing financial risk.

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3. Diagnosis

ZEBAS SERVICES LTD is a newly established private limited company operating in the cleaning services and non-hazardous waste collection sector. The "symptoms" from the balance sheet demonstrate a stable financial condition typical for a young micro-entity:

• The company has no overdue filings and complies with statutory requirements, indicating good governance and regulatory health.
• The change in directors during the first year appears orderly and no disqualifications or governance red flags are reported.
• Positive net assets and working capital imply the company has avoided liquidity distress, which is a primary "vital sign" for survival in early stages.

That said, the absence of profit and loss account details limits the full scope of financial diagnosis. The micro-entity exemption allows this, but it also means profitability, margins, and cash flow trends remain unknown. This lack of visibility is a cautionary symptom that should be addressed as the company matures.

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4. Recommendations

To enhance financial wellness and future resilience, ZEBAS SERVICES LTD should consider:

• Prepare detailed profit and loss accounts: Even if not legally required, tracking income, expenses, and profitability will provide critical insights for managing growth and identifying cost control or revenue enhancement opportunities.
• Monitor cash flow regularly: Since the business is in a cash-sensitive sector, establishing robust cash flow forecasting will prevent liquidity squeezes and enable proactive financial planning.
• Build financial reserves: Aim to increase retained earnings and shareholders’ funds to create a buffer for unforeseen expenses or downturns—this will strengthen the company’s "immune system".
• Review and manage liabilities: The current liabilities level is significant; negotiating better payment terms or reducing short-term debts could improve working capital health further.
• Strengthen governance practices: Maintaining timely filings and transparent records will foster trust with stakeholders and ease access to financing if needed.
• Plan for growth carefully: As the company expands its workforce and operations, scaling financial controls and budgeting will be essential to avoid overextension.

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