Company Number: 12627808

Analysis Date: 2025-07-29 12:25 UTC

1. Credit Opinion: DECLINE
   ZIPEMA LIMITED shows a persistently negative net asset position over the last four financial years, with net liabilities worsening from -£43k in 2021 to -£69k in 2024. The company’s current liabilities significantly exceed current assets, despite an improvement in net current assets in 2024. The large long-term creditor balances (£609k) relative to equity and current asset base raise concerns about solvency and repayment capacity. The company is classified as micro but has not demonstrated profitability or equity build-up, indicating an ongoing capital deficiency. Without evidence of positive cash flows or improving profitability, the risk of default on credit facilities is high.

2. Financial Strength:
   The balance sheet is weak, showing net liabilities of £69,183 at 31 May 2024. Fixed assets remain constant at £497,800, but the company has substantial long-term liabilities (£609,385). Current assets improved from £6k to £67.5k in 2024, reducing working capital constraints, but current liabilities, though reduced to £25,164, still represent a significant short-term obligation. Shareholders’ funds are negative, reflecting accumulated losses and indicating the company has not generated retained earnings sufficient to cover losses or creditor claims.

3. Cash Flow Assessment:
   The increase in current assets suggests some improvement in liquidity; however, the absence of employees and minimal current assets relative to liabilities indicates limited operational cash inflows. Negative net current liabilities in previous years highlight working capital difficulties. The company’s ability to generate cash internally or service debts from operations is unclear and likely insufficient, given the ongoing negative equity and creditor levels.

4. Monitoring Points:

• Monitor trends in net current assets and liquidity ratio to detect any improvement in short-term financial health.
• Review creditor ageing and composition of long-term liabilities to assess refinancing risk.
• Track any changes in fixed assets that could affect collateral value.
• Watch for updates in filed accounts for evidence of profitability or capital injections.
• Observe director actions and filings for indications of restructuring or insolvency risk.