ZELOPHEHAD LTD

Executive Summary

ZELOPHEHAD LTD shows a solid financial foundation typical of a micro-entity startup with positive net assets and working capital indicating stable liquidity. However, reliance on director loans and small scale suggest the need for strategic capital strengthening and cash flow management to ensure sustainable growth. With prudent financial controls and proactive planning, the company is poised for healthy development in the IT consultancy sector.

ZELOPHEHAD LTD - Analysis Report

Company Number: 14528195

Analysis Date: 2025-07-29 13:13 UTC

Financial Health Assessment for ZELOPHEHAD LTD (as of 31 December 2023)

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1. Financial Health Score: B

Explanation:
ZELOPHEHAD LTD demonstrates a sound initial financial position typical of a young micro-entity. The company shows a positive net asset position and healthy working capital, indicating good short-term liquidity and no immediate financial distress. However, the overall scale is very small, with minimal fixed assets and modest current assets, reflecting an early-stage business with limited operational history. The presence of director loans signals internal funding reliance, a common symptom in startup phases but a factor to monitor closely. Thus, a "B" grade reflects stability but room for growth and strengthening.

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2. Key Vital Signs

Metric	Value	Interpretation
Fixed Assets	£787	Very low fixed asset base, typical for a service-oriented IT consultancy micro business; no asset-heavy operations.
Current Assets	£2,773	Modest working capital resources available to meet short-term obligations.
Current Liabilities	£1,645	Outstanding short-term debts or payables; manageable given current assets.
Net Current Assets (Working Capital)	£1,161	Positive working capital indicates liquidity "heartbeat" is stable; able to meet current obligations comfortably.
Total Assets Less Current Liabilities	£1,948	Reflects overall residual value after immediate obligations, showing net positive asset base.
Net Assets / Shareholders’ Funds	£1,948	Equity base confirms ownership value and no apparent accumulated losses yet.
Director Loan	£2,300	Internal funding symptom; interest-free, unsecured loan by director supports cash needs but indicates external financing may be limited.

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3. Diagnosis

ZELOPHEHAD LTD is in the early stages of development with a financially "healthy cash flow" situation as evidenced by positive net current assets and net asset position. The business is not burdened by excessive liabilities or negative equity, which are common "symptoms of distress" in troubled companies. The small scale of operations and minimal fixed assets align with its classification as a micro-entity in information technology consultancy—likely a service-driven company with low capital expenditure requirements.

However, dependence on director advances (£2,300 loan) suggests initial external funding is minimal, and the company may face challenges scaling or absorbing shocks without additional capital or revenue inflows. The absence of overdue filings and compliance with statutory requirements is a positive sign of good governance "vital signs."

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4. Recommendations

• Strengthen Capital Base: Consider formalizing additional equity or external financing to reduce reliance on director loans, improving financial resilience.
• Monitor Cash Flow Closely: Maintain healthy working capital management to ensure liquidity remains stable as the business grows.
• Build Asset Base Gradually: Reinvest profits or capital to acquire essential fixed assets (e.g., IT infrastructure) that enhance operational capacity.
• Plan for Growth: Develop a financial forecast and budgeting process to anticipate funding needs, ensuring sustainable expansion beyond micro scale.
• Maintain Regulatory Compliance: Continue timely filing and adherence to Companies House deadlines to avoid penalties and maintain good corporate standing.
• Diversify Revenue Streams: Explore broadening client base or service offerings to improve income stability and reduce vulnerability.

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