ZIRTUI LTD

Executive Summary

Zirtui Ltd remains financially distressed with persistent negative equity and working capital deficits, relying heavily on director loans for liquidity. Despite some cash improvement, the company lacks operational cash flow and shows weak creditworthiness. Credit facilities should not be approved without evidence of financial turnaround or external security.

ZIRTUI LTD - Analysis Report

Company Number: 14189460

Analysis Date: 2025-07-20 16:40 UTC

1. Credit Opinion: DECLINE
   Zirtui Ltd demonstrates significant financial distress with persistent net liabilities and negative shareholders’ funds since incorporation. Despite a slight improvement in net current liabilities from -£7,610 in 2023 to -£2,342 in 2024, the company remains insolvent on a balance sheet basis. The large director loan account (£5,033) suggests reliance on shareholder funding rather than operational cash flow. Absence of debt servicing capacity and ongoing negative equity pose high credit risk. Approval of credit facilities is not advisable without substantial financial restructuring or external guarantees.

2. Financial Strength:
   The balance sheet shows weak financial health. Net assets remain negative at -£2,342 as of June 2024. Current liabilities exceed current assets, resulting in negative working capital of -£2,342. The company has no trade debtors and minimal cash (£3,231), indicating limited liquidity buffer. The large director loan account is a material related-party liability but does not alleviate insolvency concerns. The company’s net liabilities have improved from -£7,610 in 2023 but remain significantly negative, reflecting ongoing losses and lack of profitability.

3. Cash Flow Assessment:
   Cash position is low but improved from £84 to £3,231 year-over-year, indicating some increase in liquidity. However, current liabilities (£5,573) exceed cash and other current assets, evidencing short-term liquidity stress. No receivables are recorded, suggesting limited incoming cash from operations. The company likely depends on director loans and external funding to meet obligations. Working capital remains negative, and no evidence of positive operating cash flow or profitability is presented.

4. Monitoring Points:

• Monitor quarterly cash flow statements to assess liquidity trends and ability to meet short-term liabilities.
• Watch for changes in director loan accounts and shareholder funding levels.
• Track any improvement in net assets and profitability in subsequent accounts.
• Review management actions toward financial restructuring or cost control.
• Confirm status of trade payables and any overdue creditor payments.