ZEPHYR GLOBAL LIMITED

Executive Summary

Zephyr Global Limited demonstrates solid financial health for a company in its infancy, with strong working capital and equity. The primary concern lies in the high concentration of receivables, which requires active management to sustain liquidity. With focused efforts on improving cash flow and prudent financial monitoring, the company is well-positioned for a stable and promising financial future.

ZEPHYR GLOBAL LIMITED - Analysis Report

Company Number: 14671932

Analysis Date: 2025-07-29 18:13 UTC

Financial Health Assessment for Zephyr Global Limited

---

1. Financial Health Score: B

Explanation:
Zephyr Global Limited exhibits strong liquidity and a solid equity base given its early stage of operation. The company’s net current assets and shareholders’ funds are healthy, indicating good working capital management and financial stability. However, as a newly incorporated entity with limited operating history and modest fixed assets, the company should focus on building consistent revenue streams and managing liabilities prudently to sustain long-term health.

---

2. Key Vital Signs

Metric	Value	Interpretation (Medical Analogy)
Fixed Assets	£2,400	"Long-term body structure" – modest investment in tangible assets; typical for a young consultancy firm.
Current Assets	£482,261	"Healthy blood supply" – strong short-term resources, mainly debtors, providing liquidity.
Cash	£22,261	"Immediate energy reserve" – cash on hand is positive but low relative to debtors; watch cash conversion cycle.
Debtors	£460,000	"Outstanding treatment cases" – significant receivables that must be collected timely to maintain cash flow health.
Current Liabilities	£231,457	"Short-term debts" – manageable but requires monitoring to avoid liquidity stress.
Net Current Assets	£250,804	"Working capital buffer" – healthy surplus of current assets over liabilities, indicating good short-term financial health.
Net Assets (Shareholders’ Funds)	£253,204	"Overall body strength" – solid net worth for a start-up, showing positive equity and retained earnings.
Share Capital	£200	"Initial genetic code" – minimal share capital, typical for a newly formed company.

---

3. Diagnosis: Financial Condition Assessment

Zephyr Global Limited is in the early stages of its business lifecycle, having been incorporated in February 2023. The company operates in management consultancy (SIC 70229), and its financial profile reveals several encouraging signs:

• Healthy liquidity: The company has a strong net current asset position (£250,804), indicating it can comfortably meet its short-term obligations. This suggests a "healthy cash flow pulse" in the short term.
• High receivables concentration: A large portion of current assets is tied up in debtors (£460,000), which reflects revenue earned but not yet collected. This is a potential "symptom of distress" if collection is delayed, as it could strain cash flow.
• Low cash reserves: Although cash is positive (£22,261), it is relatively low compared to debtors and liabilities. The company should carefully monitor cash inflows to avoid liquidity crunches.
• Modest fixed assets: Tangible assets are minimal (£2,400), typical for a consultancy business that is not asset-intensive.
• Strong equity base: Net assets of £253,204 indicate that the company is "financially robust" with positive retained earnings, reflecting profitability or capital injections.
• No audit requirement: The company qualifies for exemption from audit, consistent with its size and early stage, but should maintain diligent accounting practices.

Overall, the company shows "good cardiovascular health" — a stable financial base with signals of potential strain from high receivables that need efficient management.

---

4. Recommendations: Improving Financial Wellness

1. Accelerate Debtor Collections:
   The large debtor balance is a key risk factor. Implement stricter credit control and prompt invoicing to improve cash conversion cycles. Consider early payment incentives or factoring if necessary to maintain a healthy cash flow.

2. Increase Cash Reserves:
   Build cash reserves to serve as a buffer for unforeseen expenses or delays in receivables. This "emergency fund" will help avoid liquidity shocks.

3. Monitor Current Liabilities:
   Keep a close eye on short-term creditors and tax liabilities to ensure timely payments and avoid penalties or interest, which can cause "financial inflammation."

4. Plan for Growth Investments:
   As the company matures, plan capital expenditures strategically to support growth without overextending financial resources. Consider whether to invest in technology, marketing, or human resources to generate sustainable revenue.

5. Regular Financial Reviews:
   Conduct frequent financial health checks to detect early "symptoms" of distress, such as increasing liabilities or slowing collections, allowing timely corrective action.

---