Company Number: 13587216

Analysis Date: 2025-07-20 14:28 UTC

1. Credit Opinion: DECLINE
   ZESTROPHY LIMITED exhibits persistent negative net assets and working capital deficits over the last three financial years, indicating ongoing financial distress. The company’s current liabilities significantly exceed current assets (£7,085 vs. £123 in 2024), signaling poor liquidity and an inability to meet short-term obligations reliably. Without evidence of turnaround or capital injection, extending credit poses a high risk of non-repayment.

2. Financial Strength:
   The balance sheet reflects increasing net liabilities from -£1,811 in 2021 to -£6,962 in 2024. Shareholders' funds are negative and deteriorating, which undermines the company’s solvency. The lack of fixed assets and minimal current assets further weakens financial resilience. This micro-entity is not generating retained earnings or building equity, suggesting operational challenges or losses.

3. Cash Flow Assessment:
   The company’s liquidity position is weak, with current liabilities nearly 58 times greater than current assets in 2024. The negative net current assets indicate working capital deficiency, potentially leading to cash flow constraints. The absence of advances or credit to directors and a small workforce (average 2 employees) point to limited operational scale but do not mitigate liquidity risk.

4. Monitoring Points:

• Improvement in net current assets and net assets to positive territory.
• Evidence of cash inflows or capital injections to improve liquidity.
• Timely filing of returns and accounts (currently satisfactory).
• Operational performance indicators or business plan updates indicating path to profitability.
• Any director changes or external financing arrangements that may affect credit risk.