ZECCHINO BICYCLE LIMITED

Executive Summary

ZECCHINO BICYCLE LIMITED is a micro-sized retail business showing modest but steady equity growth with positive net current assets. While liquidity appears adequate, the reliance on long-term creditors and limited asset base warrant cautious credit exposure and ongoing monitoring of cash flow and working capital. Conditional approval is recommended with limits aligned to the company’s size and financial profile.

ZECCHINO BICYCLE LIMITED - Analysis Report

Company Number: 12899441

Analysis Date: 2025-07-20 11:52 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   ZECCHINO BICYCLE LIMITED shows a small but positive net asset position and shareholder funds that have grown modestly over recent years. The company is micro-sized with limited fixed assets and a relatively small workforce (3 employees in 2024). However, current liabilities exceed current assets in absolute terms, and there is a substantial creditor balance due after more than one year (£65,919 in 2024). This suggests reliance on longer-term payables or loans. The company’s ability to meet short-term obligations may be tight, so credit exposure should be limited and closely monitored.

2. Financial Strength:
   The balance sheet reveals low fixed assets (£1,733 in 2024) and fluctuating but generally modest current assets around £33k-£41k. Net current assets are positive at £42,237 in 2024, indicating working capital adequacy after accounting for prepayments and accrued income. Shareholders’ funds have increased from £14,742 in 2020 to £21,949 in 2024, reflecting retained earnings and some financial stability. The company’s micro size and limited asset base imply a low capital buffer, but no net liabilities indicate solvency is maintained.

3. Cash Flow Assessment:
   Current liabilities exceed current assets before considering prepayments/accruals, which may indicate pressure on liquidity. However, net current assets after including prepayments/accruals are positive, supporting sufficient short-term liquidity. The increase in average employees from 1 to 3 could signal growth requiring working capital, but this also raises operating expenses. The relatively stable creditor balances and absence of overdue filings suggest reasonable payment discipline, but cash flow should be monitored for seasonality or spikes.

4. Monitoring Points:

• Track trends in current liabilities vs current assets to ensure liquidity is maintained.
• Monitor creditor aging and any changes in payment terms that could affect cash flow.
• Observe profitability from future accounts filings to confirm earnings growth supporting equity increases.
• Review any changes in ownership or management that might impact financial strategy or risk appetite.
• Watch for any significant increases in debt or overdue filings as early warning signals.