ZEBRA BLUE LTD

Executive Summary

ZEBRA BLUE LTD is a start-up with a modest but positive financial position, showing adequate liquidity and net assets for its size. While credit approval is recommended, it should be conditional on ongoing monitoring of cash flow and business performance given its limited trading history. The company’s financial resilience and creditworthiness will become clearer as it establishes a longer operating track record.

ZEBRA BLUE LTD - Analysis Report

Company Number: 15220729

Analysis Date: 2025-07-29 12:27 UTC

1. Credit Opinion: APPROVE with CONDITIONS
   ZEBRA BLUE LTD is a newly incorporated private limited company with a short operating history (just over one year). The financials show positive net assets and working capital, indicating initial financial stability. However, the small scale of operations and limited financial history warrant a cautious approach. Approval is recommended subject to continued monitoring of trading performance, cash flow, and debt servicing ability as the business matures.

2. Financial Strength:

• Net assets stand at £6,105, supported by tangible fixed assets (£632) and positive net current assets (£5,473).
• Current assets exceed current liabilities by a comfortable margin, reflecting adequate short-term liquidity.
• The company’s shareholder funds consist almost entirely of retained earnings (£6,104), showing modest profitability or capital injection since incorporation.
• The small asset base and limited reserves mean financial strength is currently low but adequate for the scale of operations.

3. Cash Flow Assessment:

• Cash at bank is £5,256, representing about 45% of the current liabilities, supporting liquidity and immediate payment obligations.
• Debtors are £11,897, indicating some receivables concentration; credit risk should be monitored closely.
• Net current assets of £5,473 reflect positive working capital management but on a small scale.
• Absence of long-term liabilities and overdrafts reduces refinancing risk.

4. Monitoring Points:

• Closely track cash flow trends and debtor collection to prevent liquidity strain.
• Monitor turnover growth and profitability as the company develops its operational track record.
• Watch for any increase in current liabilities or overdraft use which could stress working capital.
• Review director’s conduct and governance as the sole controlling shareholder and director, ensuring no conflicts or governance risks arise.