ZEPHYRUS AEROLABS LTD

Executive Summary

Zephyrus Aerolabs Ltd is a recently incorporated micro-entity exhibiting signs of financial distress including negative net assets and liquidity shortfalls. While statutory filings are current and management structure appears comprehensive, the absence of operational scale and financial constraints present a high risk to solvency and sustainability. Further due diligence into detailed financials, revenue generation, and funding arrangements is recommended before considering investment.

ZEPHYRUS AEROLABS LTD - Analysis Report

Company Number: SC697358

Analysis Date: 2025-07-29 13:41 UTC

1. Risk Rating: HIGH
   The company’s most recent micro-entity accounts show net current liabilities of £1,128 and net assets of negative £1,118 for the year ended 30 April 2024. This indicates a negative working capital position and erosion of shareholder funds, which raises serious solvency concerns for a company incorporated in 2021. No employees are reported, suggesting limited operational scale and potential challenges in sustaining business activities.

2. Key Concerns:

• Solvency and Negative Net Assets: The company has reported negative net assets for the latest financial year, which signals potential insolvency risk and inability to meet obligations if the trend continues.
• Liquidity Constraints: Current liabilities exceed current assets, resulting in negative net current assets. This liquidity shortfall could impact the company’s ability to cover short-term debts as they fall due.
• Operational Activity and Scale: The absence of employees and minimal financial activity reflected in micro-entity filings may indicate limited operational capacity or early-stage development without established revenue streams.

3. Positive Indicators:

• Compliance and Filing Status: The company is up to date with its statutory filings, including accounts and confirmation statements, with no overdue filings noted, reflecting sound governance in compliance matters.
• Established Leadership Team: Four directors with varied functional roles (Managing Director, Finance Director, Marketing Director, and Company Director) are appointed, which may provide a balanced management structure.
• Active Website and Market Positioning: The company maintains an active website with a clear business description focused on aerial data collection for emissions monitoring, suggesting a defined market niche and strategic direction.

4. Due Diligence Notes:

• Review Detailed Financial Statements: Obtain full financial statements including cash flow data and notes to understand the cause of negative net assets and liquidity strain, as the micro-entity accounts provide limited detail.
• Assess Revenue Streams and Business Model Viability: Verify whether the company has begun commercial operations, secured contracts, or investment to support sustainability beyond the initial incorporation phase.
• Investigate Director Backgrounds and Related Party Transactions: Confirm that directors have no adverse conduct records and review any related party transactions or loans that might affect the financial position.
• Examine Funding Sources: Evaluate shareholder contributions or external financing arrangements that could alleviate liquidity pressures or support growth plans.