ZINC INTERIORS LIMITED

Executive Summary

Zinc Interiors Limited exhibits weakening financial health with negative net assets and a working capital deficit, indicating an inability to comfortably meet short-term obligations. Its liquidity is strained by low cash reserves and high current liabilities, making it a high credit risk at this stage. Close monitoring of cash flow and debtor collections is essential if credit exposure is considered.

ZINC INTERIORS LIMITED - Analysis Report

Company Number: 14061574

Analysis Date: 2025-07-29 20:41 UTC

1. Credit Opinion: DECLINE
   Zinc Interiors Limited shows a deteriorating financial position with negative net current assets and shareholders’ funds as of the latest accounts (April 2025). The company's working capital is insufficient to cover short-term liabilities, and net liabilities have increased compared to previous years. The absence of profit and loss details and the negative equity position raise concerns about its ability to service debt and meet commercial obligations. Given these indicators, the company presents a high credit risk.

2. Financial Strength:
   The balance sheet reveals tangible fixed assets of £2,916, down from £5,832 last year, indicating asset depreciation and limited capital base. Current assets (£29,921) are mainly composed of debtors (£28,597) with very low cash balances (£1,324), which is a liquidity risk. Current liabilities have increased substantially to £38,100, outpacing current assets and leading to a net current liability of £8,179. Shareholders’ funds turned negative to £-5,363, reflecting accumulated losses or write-downs, undermining the company’s financial resilience.

3. Cash Flow Assessment:
   Cash at hand is minimal (£1,324), while trade and other debtors are significant (£28,597), which may indicate dependency on timely collections to fund operations. The large increase in other creditors (£31,391) suggests possible delayed payments to suppliers or accrual of short-term obligations. The negative working capital and declining liquidity suggest tight cash flow management and potential difficulty in meeting immediate financial commitments without additional financing or capital injection.

4. Monitoring Points:

• Track accounts receivable ageing and collection efficiency to assess cash inflow reliability.
• Monitor creditor payment patterns and any accumulation of overdue payables.
• Watch for changes in equity and reserves to detect further deterioration or recovery efforts.
• Review the company’s future filing for profit and loss data to better understand operational performance.
• Observe director and shareholder actions for potential capital injections or restructuring.