ZM IT TECHNOLOGIES LTD

Executive Summary

ZM IT TECHNOLOGIES LTD exhibits high financial risk due to significant net liabilities and negative working capital within its first full year of operation. While compliant with filing obligations and situated in a growth sector, the company’s minimal asset base and sole director ownership warrant careful scrutiny. Further investigation into liabilities and operational plans is recommended to evaluate viability.

ZM IT TECHNOLOGIES LTD - Analysis Report

Company Number: 14554212

Analysis Date: 2025-07-20 12:23 UTC

1. Risk Rating: HIGH
   The company's financial position shows significant net liabilities (£-25,302) and negative net current assets, indicating an inability to meet short-term obligations. Given the very small asset base (£420 current assets) versus substantial current liabilities (£25,722), solvency and liquidity risks are elevated.

2. Key Concerns:

• Negative Net Assets and Net Current Liabilities: The balance sheet shows net liabilities and working capital deficit, signaling financial distress and potential solvency issues.
• Limited Operating History and Scale: Incorporated late 2022, with only one year of financial data and minimal assets, the company lacks an established operational track record.
• Single Director and Sole Shareholder Control: Complete ownership and control by one individual may present governance risk and reduce oversight.

3. Positive Indicators:

• Compliance with Filing Requirements: Accounts and confirmation statement filings are up to date, showing regulatory compliance and governance discipline.
• Micro Entity Filing Status: The company benefits from simplified reporting requirements, reducing administrative burden in early stages.
• Clear Industry Focus: Classified under IT consultancy (SIC 62020), a sector with growth potential, which could support future operational stability.

4. Due Diligence Notes:

• Investigate the nature and maturity of the current liabilities of £25,722 to assess timing and risk of default.
• Review the company's business plan, revenue projections, and cash flow forecasts to understand prospects for addressing the net liability position.
• Assess the director’s background and capacity to continue funding or stabilizing the company given sole control.
• Confirm absence of any contingent liabilities or related party transactions that could amplify financial risks.
• Monitor subsequent filings and trading updates to detect any deterioration or improvement in financial health.