ZED INVESTMENTS LIMITED

Executive Summary

Zed Investments Limited demonstrates financial fragility with negative equity, significant working capital deficits, and rising liabilities outpacing asset growth. The company’s current financial structure undermines its ability to service debt or support new credit, leading to a recommendation to decline credit at this stage. Close monitoring of liquidity, debt levels, and operational improvements is essential before reconsidering credit exposure.

ZED INVESTMENTS LIMITED - Analysis Report

Company Number: 13245179

Analysis Date: 2025-07-29 14:15 UTC

1. Credit Opinion: DECLINE – Zed Investments Limited exhibits a weak financial position with persistent negative net assets and significant current liabilities exceeding current assets, resulting in a large working capital deficit. The company's inability to generate positive net equity despite growth in fixed assets, coupled with substantial long-term liabilities, suggests limited capacity to service debt or new credit facilities. The absence of profitability data and the micro-entity status further limit visibility on earnings, increasing credit risk.

2. Financial Strength: The balance sheet shows fixed assets increased markedly from £180,000 to £426,762 over the last year, indicating investment or acquisition of real estate assets aligning with their SIC codes (real estate activities). However, current liabilities have surged disproportionately to £223,622 against negligible current assets (£93), producing a net current liability of £223,529. Long-term creditors also increased to £216,095. Overall net liabilities stand at £13,582, worsening from previous years and signaling erosion of shareholder funds and solvency concerns.

3. Cash Flow Assessment: Current assets primarily consist of an immaterial cash or receivables balance, insufficient to cover short-term debts, implying liquidity strain. Negative net current assets indicate poor working capital management and potential cash flow challenges to meet immediate obligations. There is no evidence of cash flow generation or operational income in the accounts provided. This raises doubts about the company’s ability to service short-term liabilities or additional borrowing without external capital injections.

4. Monitoring Points:

• Net asset position and shareholder equity recovery trends.
• Management of current liabilities and reduction of working capital deficit.
• Operational cash flow generation and profitability metrics once available.
• Any changes in long-term debt levels and maturity profiles.
• Director’s plans or external funding sources to stabilize finances.
• Timely filing of accounts and confirmation statements to assess ongoing compliance.