ZED PROPERTY SOLUTIONS LTD

Executive Summary

ZED PROPERTY SOLUTIONS LTD shows significant liquidity stress and negative equity despite growth in fixed assets, indicating financial distress typical of a company struggling to balance growth with cash flow. Immediate steps to improve liquidity, restructure debt, and strengthen equity are essential to stabilize the business and ensure sustainable operations.

ZED PROPERTY SOLUTIONS LTD - Analysis Report

Company Number: 13362361

Analysis Date: 2025-07-29 19:41 UTC

Financial Health Assessment: ZED PROPERTY SOLUTIONS LTD (as at 30 April 2024)

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1. Financial Health Score: D

Explanation:
The company shows symptoms of financial distress, primarily indicated by negative shareholders’ funds and a significant imbalance between current liabilities and current assets. While fixed assets have grown, the working capital position is deeply negative, suggesting liquidity challenges. The overall financial condition is fragile and requires urgent attention to avoid worsening.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	201,412	Healthy growth in long-term assets indicates investment in property portfolio (core business).
Current Assets	567	Extremely low liquid assets—"cash in the bloodstream" is minimal, posing risk for daily operations.
Current Liabilities	221,722	High short-term debts create a "symptom of distress" with immediate pressure on liquidity.
Net Current Assets (Working Capital)	-221,155	Acute liquidity deficit—company can’t cover its short-term debts with current assets.
Shareholders’ Funds (Equity)	-19,248	Negative equity shows accumulated losses; company’s "financial health" is compromised.
Creditors due after one year	221,722	Significant long-term borrowings, likely secured against assets, increasing financial leverage.

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3. Diagnosis: What the Financial Data Reveals About Business Health

ZED PROPERTY SOLUTIONS LTD is operating in the real estate letting sector and has invested substantially in fixed assets (likely property holdings), which have increased by roughly 46% in the last year (£137,532 to £201,412). However, the company’s liquidity is severely strained, with current liabilities far exceeding current assets. This "cash flow blockage" can impair operational capability and meeting short-term obligations.

The persistent negative shareholders’ funds, worsening from -£9,892 in 2023 to -£19,248 in 2024, indicate accumulated losses or write-downs exceeding equity. This suggests the company is in a state similar to a patient with a weakening heart muscle—structurally "alive" but struggling to sustain normal function without intervention.

The significant increase in creditors due after one year (+£72,148) implies increased reliance on debt financing. While leveraging assets to finance growth is common in real estate, the combination of high borrowings and weak liquidity presents a risk of financial distress if rental income or cash inflows falter.

No employees are recorded, suggesting a lean operation or reliance on external contractors, which may reduce fixed overheads but also indicates limited internal capacity.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Improve Liquidity ("Restore Healthy Cash Flow")
  Focus on converting non-current assets to cash or reducing short-term liabilities. Consider negotiating extended payment terms with creditors or restructuring debt to ease immediate pressure.

• Equity Injection or Capital Restructuring
  Address negative equity by injecting fresh capital or converting some debt to equity to strengthen the balance sheet and restore "financial vitality."

• Cost Control and Revenue Enhancement
  Review operational costs to minimize outflows. Explore opportunities to increase rental income or diversify revenue streams to enhance profitability.

• Regular Financial Monitoring
  Establish routine financial health checks (monthly cash flow forecasts, working capital analysis) to detect early warning signs and manage symptoms before they escalate.

• Engage Professional Advice
  Given the financial symptoms, consulting insolvency practitioners or financial advisors could provide tailored solutions such as refinancing, asset sales, or business restructuring.

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