Company Number: 13501964

Analysis Date: 2025-07-29 17:52 UTC

Financial Health Assessment for ZEBILLOW LIMITED (as of 31 July 2024)

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1. Financial Health Score: D

Explanation:
Zebillow Limited shows signs of financial distress with persistent net liabilities and negative shareholder funds over recent years. Although fixed assets remain stable, the company’s working capital is minimal, and its liabilities exceed assets, indicating an unhealthy balance sheet. The score "D" reflects significant warning signs that require urgent attention to improve financial stability.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	167,216	Stable long-term asset base; a positive sign.
Current Assets	2,769	Very low short-term liquid resources.
Current Liabilities	189,515	High short-term obligations; potential cash flow risk.
Net Current Assets	1,919	Slightly positive but very thin working capital margin.
Total Assets Less Current Liabilities	169,135	Reflects fixed assets plus net current assets.
Creditors due after one year	189,515	High long-term debt burden; financial strain.
Net Assets / Shareholders’ Funds	-20,380	Negative equity; company owes more than it owns.
Employee Count	1	Small operation consistent with micro entity.

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3. Diagnosis: Financial Symptoms and Underlying Health

• Negative Net Assets: The company has net liabilities of £20,380, meaning its total debts exceed its assets. This is a critical symptom of financial distress, akin to a patient having dangerously low vital signs.

• High Leverage: The company carries long-term liabilities (£189,515) slightly exceeding the fixed asset base (£167,216). This mismatch suggests the company is highly leveraged and may struggle to meet debt repayments, increasing insolvency risk.

• Poor Liquidity: Current assets are only £2,769, barely enough to cover short-term obligations of £189,515, though net current assets are positive due to a small creditor adjustment. This signals a tight cash flow scenario with symptoms of liquidity stress.

• Stable Fixed Assets: The consistency in fixed assets over the years suggests stable investment or property holdings, which is a positive structural foundation.

• Negative Equity Trend: The net asset position has worsened from a small positive balance in 2021 (£54) to negative in subsequent years, indicating accumulated losses or increased liabilities that have not been offset by earnings or capital injections.

• Small Scale Operation: With only one employee, the company’s operational scale is minimal, which may limit revenue generation and cash inflows.

In medical terms, the company exhibits "symptoms of distress" — negative equity and liquidity strains — that, if untreated, could worsen and lead to "financial collapse" or insolvency.

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4. Prognosis: Future Financial Outlook

Without corrective measures, the company’s financial health may deteriorate further due to:

• Continued negative equity increasing insolvency risk.
• Limited cash reserves to service liabilities.
• Potential difficulty in securing additional funding.

However, the presence of fixed assets provides a potential asset base to restructure debt or raise capital. If the company can improve cash flow, reduce liabilities, or recapitalize, recovery is possible.

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5. Recommendations: Steps to Improve Financial Wellness

• Conduct a Cash Flow Review: Identify inflows/outflows to optimize working capital and ensure sufficient liquidity to meet obligations.

• Debt Restructuring: Negotiate with creditors to extend repayment terms or reduce debt burden to relieve financial pressure.

• Capital Injection: Consider equity investment from shareholders or new investors to restore positive net assets and strengthen the balance sheet.

• Asset Utilization: Explore opportunities to monetize or leverage fixed assets to improve cash reserves.

• Cost Control: Keep operational expenses minimal given the small scale and focus on efficient management.

• Regular Financial Monitoring: Implement monthly financial reviews to detect early warning signs and take proactive action.

• Professional Advice: Engage financial advisors or insolvency practitioners early if liquidity worsens to avoid formal insolvency procedures.

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Summary

Zebillow Limited is currently in a financially fragile state, characterized by negative net assets and high leverage with minimal liquidity. The company’s stable fixed assets offer some foundation, but the mismatch between assets and liabilities signals urgent need for improved cash management and debt restructuring. Without intervention, the risk of insolvency rises, but with decisive action, the company may restore financial health.