Company Number: 13749051

Analysis Date: 2025-07-29 14:53 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Zhiq Limited is a small, active private limited company engaged in transportation support activities. The company shows modest but positive net assets and net current assets for the year ending November 2023, indicating a marginal improvement in financial position. However, liquidity remains tight, with cash balances declining and current liabilities increasing, which suggests working capital constraints. Given the company’s young age (incorporated late 2021), small scale, and limited financial history, credit should be extended with caution, subject to ongoing monitoring and potentially secured terms or limits aligned to cash flow.

2. Financial Strength:
   The balance sheet as of 30 November 2023 shows net assets of £4,870, up from £246 in the prior year, reflecting some retained earnings accumulation. Current assets of £12,597 exceed current liabilities of £7,727, resulting in a positive net current asset position of £4,870, which is a substantial improvement from only £246 the previous year. Shareholders’ funds entirely consist of equity with no long-term liabilities reported, indicating no gearing risk. However, the absolute size of these figures is small, consistent with a micro or small enterprise profile, limiting financial resilience.

3. Cash Flow Assessment:
   Cash on hand decreased significantly from £5,611 in 2022 to £2,710 in 2023 despite an improvement in net current assets primarily due to increased debtors (£9,887) and higher creditors (£7,727). This suggests cash is tied up in receivables and the company may face liquidity pressure if collections slow or creditors demand faster payment. The company employs only two people, limiting payroll burden. Overall, working capital management will be critical to maintaining liquidity and servicing any credit facilities.

4. Monitoring Points:

• Debtor aging and collection efficiency to ensure cash inflows support liquidity
• Trends in current liabilities, especially tax and social security obligations, to avoid payment defaults
• Profitability trends beyond the balance sheet to confirm sustainable earnings growth
• Any changes in director or ownership structure, given single shareholder control
• Timely filing of accounts and confirmation statements to maintain compliance and transparency