ZITECHCODING LTD

Executive Summary

ZitechCoding Ltd shows ongoing financial weakness with negative net assets and liquidity deficits, limiting its capacity to service debt. Although recent figures indicate slight improvement, the company remains undercapitalized and operationally constrained. Credit facilities are not recommended without significant financial strengthening or security.

ZITECHCODING LTD - Analysis Report

Company Number: 14470883

Analysis Date: 2025-07-20 12:03 UTC

1. Credit Opinion: DECLINE
   ZitechCoding Ltd exhibits a weak financial position with persistent net liabilities and negative shareholders' funds over the last two reported financial years. The company’s net current liabilities, though improving, remain significant at £16,647 as of February 2025, indicating ongoing liquidity challenges. The negative net assets (£3,180) and continued losses suggest limited ability to service debt or absorb financial shocks. The company is a micro-entity with very limited scale and a shrinking employee base, further constraining operational capacity. Given these factors, extending credit facilities would pose considerable risk without substantial improvement or guarantees.

2. Financial Strength:
   The balance sheet shows a decline in fixed assets from £20,163 (2024) to £16,059 (2025), which may reflect asset disposals or depreciation. Current assets have decreased from £9,219 to £5,261, while current liabilities have more than halved from £38,877 to £21,908, signaling some liability management but still resulting in negative working capital. The company’s net liabilities reduced from £9,441 to £3,180, showing incremental improvement but still indicating an overall weak financial position. Shareholders’ funds remain negative, reflecting accumulated losses and undercapitalization.

3. Cash Flow Assessment:
   The company’s negative net current assets highlight a liquidity shortfall, suggesting it may struggle to meet short-term obligations without external funding or owner support. The reduction in current liabilities is positive but not sufficient to offset the low current assets position. No cash or cash equivalents details are provided, but the overall liquidity profile is poor. The decreasing employee count (from 3 to 2) could indicate cost-cutting measures or business contraction, which may impact future revenue generation and cash inflows.

4. Monitoring Points:

• Continued monitoring of net current assets and liquidity ratios to assess improvements in short-term financial health.
• Watch for stabilization or growth in fixed and current assets to support operations.
• Track turnover and profitability trends once available, as current data does not provide revenue insight.
• Monitor director and shareholder capital injections or restructuring efforts that may strengthen the balance sheet.
• Observe any changes in filings or status indicating financial distress or restructuring moves.