Company Number: 13037174

Analysis Date: 2025-07-20 12:54 UTC

Financial Health Assessment: ZIOTECH SOLUTIONS LTD

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1. Financial Health Score: B

Explanation:
ZIOTECH SOLUTIONS LTD demonstrates a solid foundation with steadily growing net assets and positive working capital over the past four years. The company maintains a healthy cushion of current assets relative to liabilities, indicating stability and liquidity. However, as a micro-entity with minimal employees and relatively modest scale, growth prospects and risk diversification are limited. Hence, a grade B reflects good financial health but with scope for improving operational scale and resilience.

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2. Key Vital Signs

Metric	2023 Value	Interpretation
Net Assets	£145,014	Positive and increasing net assets signal growing equity and retained earnings. Healthy balance sheet strength.
Current Assets	£177,267	Strong short-term assets primarily cash/debtors provide liquidity for day-to-day operations.
Current Liabilities	£32,599	Low level of short-term obligations relative to assets, indicating manageable short-term debt.
Net Current Assets (Working Capital)	£145,014	Positive working capital ("healthy cash flow") shows the company can meet short-term obligations comfortably.
Share Capital	£100	Minimal share capital typical for micro companies; focus is on retained earnings.
Employee Count	1 (including director)	Very lean operation, reducing fixed costs but limiting capacity for growth.
Account Category	Micro	Simplified reporting with limited disclosure but consistent compliance.
Filing Status	Up to date	No overdue filings, indicating good compliance and governance.

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3. Diagnosis

ZIOTECH SOLUTIONS LTD presents as a financially stable micro-entity with positive working capital and steadily increasing net assets over four years (from £66k in 2020 to £145k in 2023). This indicates retained profits or injections of funds have strengthened equity. The company’s liquidity position is "healthy," with current assets exceeding current liabilities by a good margin, reducing risk of cash flow distress.

The company operates with a single employee/director, which minimizes overhead but may constrain operational capacity and growth potential. The lack of a profit and loss account filing limits insight into revenue, expenses, and profitability trends, which are crucial "symptoms" for assessing operational vitality. The company’s IT consultancy sector (SIC 62020) is competitive; maintaining liquidity and a strong balance sheet is advantageous but scaling will require investment and possibly workforce expansion.

No signs of financial distress or governance issues are visible, and the company complies well with filing deadlines.

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4. Recommendations

• Enhance Profit & Loss Transparency: Consider filing full financial statements including profit and loss accounts to provide stakeholders with a clearer picture of profitability and operational efficiency.
• Growth Strategy: Evaluate opportunities to scale operations by expanding the workforce or diversifying client base to reduce dependence on a single resource.
• Cash Flow Management: Maintain the positive working capital trend but monitor closely as growth may increase short-term liabilities.
• Capital Structure: Explore modest equity injections or debt facilities to support growth initiatives without compromising liquidity.
• Risk Management: Adopt basic financial controls and forecasting to anticipate potential cash flow bottlenecks or market shifts.
• Governance: Continue timely compliance with filings and consider formal internal reviews to strengthen corporate governance as complexity grows.

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