Company Number: 14594897

Analysis Date: 2025-07-29 15:04 UTC

1. Risk Rating: LOW
   ZINZAN LTD demonstrates solid solvency and liquidity metrics with positive net current assets and net assets increasing year on year. The company is active, compliant with filings, and under the control of a single director who holds 100% ownership, indicating clear governance. The financials are unaudited but prepared by a qualified accountant with no indications of distress.

2. Key Concerns:

• Reliance on a single director and controlling shareholder may pose governance and succession risk.
• Relatively small scale of operation with limited employee count (1) and modest asset base could limit operational flexibility.
• The company is newly incorporated (2023) and has limited financial history, which restricts trend analysis and long-term stability assessment.

3. Positive Indicators:

• Consistent growth in net current assets (from £8,242 in 2024 to £18,741 in 2025) and net assets (from £11,100 to £24,401) showing improving financial strength.
• Healthy cash balance (£27,621) relative to current liabilities (£18,344) supports good liquidity position.
• No overdue statutory filings or compliance issues, reflecting good governance discipline.
• The company holds tangible fixed assets with recent additions, indicating investment in operational capacity.

4. Due Diligence Notes:

• Verify the sustainability of cash flows supporting growth in assets and liabilities, given limited size and single director operation.
• Confirm absence of any contingent liabilities or off-balance sheet risks not captured in provisions.
• Assess customer concentration and debtor quality given relatively high trade debtor balance (£7,480) for a small company.
• Inquire about the nature of provisions (£1,887) to understand potential future obligations.
• Confirm any related party transactions or director loans beyond the disclosed unsecured, interest-free loan.