ZEBRA WEALTH MANAGEMENT LTD

Executive Summary

Zebra Wealth Management Ltd demonstrates good financial health with strong liquidity and increasing equity, indicating sustainable business growth. Monitoring and managing related party receivables will be key to maintaining healthy cash flow and reducing concentration risks. The company is well placed for continued success with appropriate governance and operational controls in place.

ZEBRA WEALTH MANAGEMENT LTD - Analysis Report

Company Number: 13128210

Analysis Date: 2025-07-20 12:14 UTC

Financial Health Assessment Report for Zebra Wealth Management Ltd

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1. Financial Health Score: B (Good Health with Positive Momentum)

Explanation:
Zebra Wealth Management Ltd displays solid financial health characterized by strong liquidity, improving net assets, and positive working capital. The company’s financial statements reveal healthy cash reserves and increasing equity, indicating robust internal financing. Some caution is advised due to modest fixed asset base and reliance on related party transactions, but overall the business is financially sound and growing.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Current Assets	£126,891	Adequate short-term resources to meet obligations.
Cash & Cash Equivalents	£66,508	Healthy cash flow "pulse" ensures operational flexibility.
Debtors	£60,383	Increased receivables; monitor collection efficiency.
Current Liabilities	£14,739	Manageable short-term debts; low risk of liquidity stress.
Net Current Assets	£112,152	Positive working capital signals good short-term financial health.
Net Assets	£112,490	Growing shareholder equity; "strong bone structure" for growth.
Share Capital	£100	Minimal equity base; profits retained internally.
Employee Count	2	Small team indicative of a micro/small enterprise.
Related Party Debtors	£40,000	Material related party balance; potential concentration risk.

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3. Diagnosis

Liquidity and Cash Flow:
The company exhibits a strong liquidity position with cash representing over 50% of current assets and a net current asset position of £112k. This is akin to a healthy heartbeat, signaling the company can comfortably cover short-term obligations without distress.

Asset Quality and Capital Structure:
Fixed assets are low (£451), reflecting minimal investment in tangible property or equipment. The company relies primarily on financial intermediation services rather than capital-intensive operations, which is typical for this sector.

Net assets have increased significantly from £73.9k in 2023 to £112.5k in 2024, indicating the company is generating retained earnings and building equity. This is the "strong skeleton" supporting business sustainability.

Receivables and Related Party Exposure:
Debtors have risen substantially, driven notably by a £40k related party debtor balance. While intra-group or related party balances are common, they represent a symptom to monitor closely as they could impact cash flow if not settled promptly.

Profitability and Operational Efficiency:
Although detailed profit and loss accounts are not included, the growth in equity and current assets suggests ongoing profitability and sound management of operations.

Governance and Control:
The company is controlled entirely by Mr. Steven Bates, who holds 75-100% of shares and voting rights. This centralized control can be both a strength (quick decision-making) and a potential risk if governance practices are not robust.

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4. Recommendations

1. Enhance Receivables Management:

   • Implement tighter credit control and collection procedures to reduce debtor days, especially for related party balances. This will improve cash flow health and reduce liquidity risk.

2. Maintain Adequate Cash Reserves:

   • Continue to monitor cash flow closely to preserve the current strong liquidity position. Consider setting a minimum cash threshold as a "health baseline" for operations.

3. Diversify Client Base and Counterparty Exposure:

   • Reduce reliance on related party transactions to mitigate concentration risk and improve financial independence.

4. Prepare for Audit/Review if Growth Continues:

   • Given the company’s growth trajectory, consider preparing for audit or independent review to enhance transparency and stakeholder confidence.

5. Strengthen Governance:

   • If feasible, introduce additional governance controls or independent oversight to complement the director’s role, balancing personal control and corporate transparency.

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Executive Summary

Zebra Wealth Management Ltd shows a solid financial foundation with strong liquidity, growing net assets, and positive working capital, reflecting a healthy financial pulse. The company’s main symptom of risk is elevated related party debtors, which should be managed to ensure sustainable cash flow. Overall, the prognosis is positive, with the company positioned well for steady growth if it continues prudent financial and operational management.