ZECO HOLDINGS LIMITED

Executive Summary

ZECO HOLDINGS LIMITED currently demonstrates high solvency and liquidity risk due to a large imbalance between current liabilities and available cash. The company’s financial disclosures lack operational performance data, limiting visibility on sustainability. Immediate focus should be on the subsidiary investment quality and director’s strategy to manage liabilities and enhance business viability.

ZECO HOLDINGS LIMITED - Analysis Report

Company Number: 13888832

Analysis Date: 2025-07-20 19:04 UTC

1. Risk Rating: HIGH
   The company shows a significant mismatch between current liabilities (£50,000) and available cash (£100), resulting in a substantial negative net current asset position (-£49,900). This indicates a high short-term liquidity risk and potential solvency concerns.

2. Key Concerns:

• Severe liquidity shortfall: Current liabilities far exceed liquid assets, posing risk to meeting short-term obligations.
• Lack of operational trading data: Accounts show investment in a subsidiary but no turnover or profit & loss information, making it difficult to assess business sustainability.
• Single director/owner control: Entire shareholding and voting rights are held by one individual, raising governance and succession risks.

3. Positive Indicators:

• Company is compliant with filing deadlines (accounts and confirmation statement up to date).
• There is a fixed asset investment (£50,000) representing ownership in a subsidiary, which may generate future returns or value.
• The company benefits from exemption from audit, typical for small companies, reducing administrative burden.

4. Due Diligence Notes:

• Investigate the nature and financial health of the subsidiary investment valued at £50,000 to understand underlying asset quality.
• Clarify the company’s business model and revenue generation plans, as no income or profitability data is disclosed.
• Assess director’s plans to address the large current liabilities given the minimal cash reserves.
• Review any off-balance sheet commitments or contingent liabilities that may exacerbate financial risk.