ZINE CONSULTANCY AND EDITORIAL SERVICES LTD

Executive Summary

ZINE CONSULTANCY AND EDITORIAL SERVICES LTD is an early-stage private limited company with adequate short-term liquidity but carries a significant director loan liability relative to its equity base. It complies well with regulatory filings and maintains a positive net current asset position. Continued monitoring and further inquiry into the director loan terms and business sustainability are recommended to fully assess solvency and operational risk.

ZINE CONSULTANCY AND EDITORIAL SERVICES LTD - Analysis Report

Company Number: 15244029

Analysis Date: 2025-07-29 18:12 UTC

1. Risk Rating: MEDIUM
   The company is newly incorporated with limited financial history but shows a positive net current asset position and no overdue filings, which is favorable. However, the presence of a significant director's loan account liability and low net assets relative to liabilities introduces moderate solvency risk that warrants caution.

2. Key Concerns:

• Director’s Loan Account Liability (£30,367): This non-current liability is substantial compared to net assets (£3,616) and current assets, potentially indicating reliance on director funding rather than operational cash flow.
• Limited Operating History: Incorporated in October 2023, with only the first set of accounts filed, the company lacks a track record to assess ongoing operational stability or revenue generation.
• Low Shareholders’ Funds: Equity is minimal, which may reduce financial resilience against unforeseen expenses or downturns.

3. Positive Indicators:

• Healthy Net Current Assets (£33,983): Current assets exceed current liabilities, indicating the company can meet short-term obligations.
• Good Cash Position (£35,301): Cash comprises the majority of current assets, suggesting liquidity is currently adequate.
• On-Time Filing Compliance: Both accounts and confirmation statements are up to date, reflecting good regulatory compliance and governance discipline.
• Single Experienced Director with Controlling Interest: The sole director and 75-100% controlling shareholder is transparent and appears compliant with filings.

4. Due Diligence Notes:

• Investigate the nature and terms of the director’s loan account, including repayment schedule and whether it is convertible to equity or repayable on demand.
• Review business plan and revenue forecasts to assess operational sustainability and capacity to reduce reliance on director loans.
• Verify the company’s client base and contracts to ascertain revenue visibility and risk concentration.
• Monitor future financial filings for trends in profitability, cash flow, and capital structure changes.