ZEROTWO PROPERTIES CARDIFF LTD

Executive Summary

ZEROTWO PROPERTIES CARDIFF LTD is a newly formed micro entity in the real estate sector, currently exhibiting fragile financial health with negative working capital and shareholders’ funds. While there are no signs of insolvency or overdue filings, the company requires immediate capital infusion and operational ramp-up to improve liquidity and equity. With focused management and financial discipline, the company can transition from its fragile startup phase to a more stable financial footing.

ZEROTWO PROPERTIES CARDIFF LTD - Analysis Report

Company Number: 15078046

Analysis Date: 2025-07-29 19:37 UTC

Financial Health Assessment Report for ZEROTWO PROPERTIES CARDIFF LTD

---

1. Financial Health Score: D

Explanation:
The company exhibits significant early-stage financial distress symptoms, with net current liabilities and negative shareholders’ funds. Given the limited operating history (incorporated in August 2023) and micro entity scale, this score reflects a fragile financial condition requiring prompt attention.

---

2. Key Vital Signs:

Metric	Value	Interpretation
Incorporation Date	August 2023	Very young company, likely pre-revenue or startup phase
Share Capital	£20	Minimal equity base; typical for micro entities
Current Assets	£1	Extremely low; minimal cash or liquid assets
Current Liabilities	£300	Small short-term debts exceeding current assets
Net Current Assets	-£299	Negative working capital ("cash flow symptoms")
Total Assets Less Current Liabilities	-£299	Negative net assets indicating liabilities exceed assets
Shareholders’ Funds	-£299	Negative equity; company is "underwater" financially

Interpretation:

• The negative net current assets signal the company does not have enough short-term assets to cover its immediate liabilities, indicating "symptoms of liquidity distress."
• Negative shareholders’ funds imply accumulated losses or initial funding shortfall.
• The company has no employees and minimal operational history, consistent with an early-stage entity still investing or setting up operations.
• Absence of revenue or profit data suggests the company may not have started trading significantly or is in investment phase.
• The micro entity accounting exemption and unaudited status mean financial data is limited and less scrutinized.

---

3. Diagnosis:

ZEROTWO PROPERTIES CARDIFF LTD is in a pre-operational or early startup phase within the real estate management and property holding sector, as indicated by its SIC codes. The financial "vitals" reveal initial financial weakness, with very low liquid assets and liabilities exceeding assets. This is common in newly incorporated companies before operations ramp up or capital injections occur. The negative equity and working capital deficit indicate the company is currently financially fragile and likely dependent on owner funding or external capital to sustain operations.

There are no signs of insolvency or overdue statutory filings, which is positive. The sole director and majority shareholder is Mr. Zohaib Hussain, suggesting tight owner control which can facilitate quick decision-making in addressing financial issues.

---

4. Recommendations:

• Capital Injection: Consider increasing equity or securing short-term financing to improve liquidity and working capital. Without adequate cash reserves, operational activities will be constrained.
• Revenue Generation: Expedite efforts to start or scale income-generating activities to reverse negative equity trends and improve cash flow.
• Cost Control: Maintain tight control over expenses during this fragile phase to conserve limited resources.
• Financial Monitoring: Implement regular cash flow forecasting and budget reviews to detect early warning signs of financial distress.
• Stakeholder Communication: Keep transparent communication with creditors and stakeholders to manage expectations and negotiate better terms if needed.
• Strategic Planning: Develop a clear business plan outlining milestones for breaking even and achieving sustainable profitability.
• Compliance Vigilance: Continue timely filing of accounts and confirmation statements to avoid penalties and preserve company standing.

---

Medical Analogy Summary:
ZEROTWO PROPERTIES CARDIFF LTD’s financial "vitals" resemble a patient in the early stages of treatment—currently weak with negative working capital and equity, but showing no acute distress signs like insolvency or missed filings. With prompt intervention (capital support and revenue generation), the prognosis can improve to a stable and "healthy" financial condition.

---