Company Number: 13010891

Analysis Date: 2025-07-20 18:35 UTC

1. Credit Opinion: APPROVE
   ZK Accounting Solutions Ltd demonstrates a stable financial position with positive net current assets and net assets increasing over the last two years. The company is active, compliant with filing deadlines, and has a sole director and 75-100% shareholder with direct control, indicating clear management oversight. The business operates in a low-risk sector (accounting and bookkeeping) with modest but improving financial strength, suitable for micro-scale credit facilities. There are no adverse indicators such as overdue filings, director disqualifications, or liquidity concerns.

2. Financial Strength:
   The balance sheet shows net current assets of £3,574 and net assets of £2,674 as of 30 November 2023, up from £2,414 and £1,964 respectively in 2022. This growth, albeit on a small scale, reflects an improving equity base and prudent management of short-term liabilities (£434 current liabilities vs. £4,008 current assets). Share capital is minimal (£100), typical of micro entities. No long-term liabilities or fixed assets data provided, but total assets less current liabilities equals net current assets, indicating no material long-term debt.

3. Cash Flow Assessment:
   The company’s liquidity position is sound with a current ratio approximately 9.2x (current assets/current liabilities), indicating strong short-term liquidity and working capital management. The increase in accruals and deferred income from £450 to £900 suggests some income recognition timing but does not materially affect liquidity. The company employs 2 staff on average, suggesting controlled operating costs. No cash flow statement was provided, but strong net current assets imply adequate cash or near-cash resources to meet obligations.

4. Monitoring Points:

• Continue monitoring net current assets and net asset growth to ensure sustained financial health.
• Watch for any increase in current liabilities or accruals that could pressure liquidity.
• Monitor director’s compliance and any changes in ownership or control that could affect governance.
• Ensure ongoing timely filing of accounts and confirmation statements to avoid regulatory risk.
• Evaluate profitability trends once profit and loss accounts become available to assess earnings stability.