Company Number: 12620682

Analysis Date: 2025-07-29 12:28 UTC

1. Credit Opinion:
   CONDITIONAL APPROVAL. ZICO GROUP LIMITED shows ongoing operations with no overdue filings and an active status. However, the company has persistent net liabilities and negative shareholders’ funds, indicating an equity deficit. The high level of creditors, particularly amounts due after one year, suggests reliance on external funding which may impact liquidity. Approval would be conditional on monitoring cash flow closely and ensuring no material deterioration in debtor collections or creditor terms. Management’s commitment to maintaining current assets above current liabilities is a positive factor, but the weak equity position warrants caution.

2. Financial Strength:
   The balance sheet reflects net liabilities of £71,833 as of 30 September 2024, worsening from £31,038 the prior year. Current assets (£1.59M) exceed current liabilities (£430k), yielding positive net current assets of £1.16M, which supports short-term solvency. However, non-current creditors of £1.23M create an overall net liability position. The company’s fixed assets are not disclosed, but the large debtor balance (£1.55M) dominates current assets, indicating potential concentration risk. The negative retained earnings indicate accumulated losses, weakening equity and increasing financial vulnerability.

3. Cash Flow Assessment:
   Cash on hand is low at £43,672 relative to current liabilities, and debtor balances constitute the bulk of current assets. This suggests working capital is tied up in receivables, which may affect liquidity if collections slow. The increase in directors’ current accounts (creditors) from £300k to £429k indicates additional short-term funding support by management. While net current assets are positive, the company’s ability to meet debt service obligations depends on timely receipt of debtor payments and management’s willingness to continue supporting creditor balances.

4. Monitoring Points:

• Continued trend in net liabilities and shareholder funds to assess improvement or further deterioration.
• Debtor aging and collection efficiency to ensure receivables remain collectible and do not impair liquidity.
• Changes in creditor balances, especially directors’ loans, to evaluate funding stability and risk of withdrawal.
• Cash flow from operations to confirm ability to service short and long-term debt without additional equity injections.
• Any significant changes in business environment within the real estate buying/selling sector (SIC 68100) that could impact asset values or market liquidity.