ZEDRIXO CONSULTING LTD

Executive Summary

Zedrixo Consulting Ltd exhibits strong initial financial health with positive liquidity and net assets, reflecting a stable start typical for a micro-entity in the IT consultancy sector. The company's financial "vital signs" show no distress symptoms, but its early-stage status calls for careful cash flow management and strategic growth planning to ensure sustainable long-term health. Maintaining compliance and gradually diversifying governance will further support its financial wellness journey.

ZEDRIXO CONSULTING LTD - Analysis Report

Company Number: 15169749

Analysis Date: 2025-07-20 19:15 UTC

Financial Health Assessment for ZEDRIXO CONSULTING LTD

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1. Financial Health Score: B

Explanation:
Zedrixo Consulting Ltd demonstrates a solid financial foundation typical of a newly incorporated micro-entity. The company shows healthy liquidity, positive net assets, and no overdue filings, indicating good compliance and operational discipline. The score 'B' reflects a strong start with minor caution due to limited operational history and scale.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	699	Very low, typical for a service-based IT consultancy; minimal investment in long-term assets.
Current Assets	69,043	Healthy cash and receivable position showing liquidity strength.
Current Liabilities	31,628	Moderate short-term obligations, manageable relative to current assets.
Net Current Assets	37,415	Positive working capital indicating ability to meet short-term debts comfortably.
Total Assets Less Current Liabilities	38,114	Reflects overall asset strength after covering current debts.
Net Assets (Shareholders' Funds)	38,013	Positive equity base; signifies retained value for shareholders.
Average Employees	1	Very small staff, consistent with micro company status.
Director Loan Account	£28 (owed to company)	Nominal amount, not a concern but indicates director's financial interaction.

Additional Notes:

• No audit required under micro-entity exemptions, consistent with size.
• No overdue statutory filings, indicating compliance health.
• Single director and sole significant controller, simplifying governance but concentrating control risk.

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3. Diagnosis: Financial Health and Underlying Business Condition

Zedrixo Consulting Ltd is in the early, stable phase of its business lifecycle. The "vital signs" reveal a company with healthy liquidity and positive net assets, akin to a patient with a strong pulse and stable blood pressure but still in early recovery or growth phase.

The company’s current assets notably exceed current liabilities, suggesting a "healthy cash flow" environment for now, with enough buffer to cover short-term debts. The low fixed assets align with its industry profile (IT consultancy), which typically requires more intangible assets like expertise rather than physical infrastructure.

However, the limited history and size (micro-entity, 1 employee) suggest the company is still in the "early development stage," meaning it does not yet have extensive operational data to fully assess long-term sustainability or profitability. The sole director’s significant control means governance is straightforward but could be vulnerable if that individual faces issues.

No signs of financial distress or liquidity crunch are present—no overdue accounts or excessive liabilities. The director’s small loan to the company is minor and not an immediate concern.

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4. Recommendations: Path to Financial Wellness

To maintain and improve financial health, Zedrixo Consulting Ltd should consider the following:

• Build Reserves: Continue to grow net current assets and net assets to build a cushion against unforeseen expenses or downturns. This "strengthens the immune system" of the business.
• Monitor Cash Flow: Maintain rigorous cash flow management to ensure continued ability to meet current liabilities without strain. Implement forecasting to anticipate and address any liquidity fluctuations early.
• Diversify Control: Over time, consider expanding governance through additional directors or advisors to reduce concentration risk and improve strategic oversight—akin to having multiple specialists on a medical care team.
• Plan for Growth: Invest in client development, marketing, and potentially staff to increase revenue and scale, while keeping costs under control. Strategic reinvestment can improve "long-term vitality."
• Compliance Vigilance: Maintain timely filing of accounts and confirmation statements to avoid penalties and maintain good standing with regulatory bodies.
• Financial Reporting: As the company grows, consider moving beyond micro-entity reporting to fuller accounts providing greater transparency for stakeholders and potential investors.

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