ZODEX LIMITED

Executive Summary

ZODEX LIMITED exhibits high financial risk due to a pronounced negative working capital position as of June 2024, with current liabilities substantially exceeding current assets. While the company remains compliant with filings and under the control of a single director/shareholder, its limited scale and deteriorating financial metrics pose significant concerns for operational sustainability and solvency. Further investigation into the reasons behind the rapid financial decline and current cash flow status is recommended before considering investment.

ZODEX LIMITED - Analysis Report

Company Number: 13918125

Analysis Date: 2025-07-29 18:01 UTC

1. Risk Rating: HIGH
   The company’s latest annual accounts reveal significant solvency concerns with current liabilities far exceeding current assets by £20,074 as of 30 June 2024, indicating negative working capital and net liabilities. This raises immediate questions about the company’s ability to meet short-term obligations.

2. Key Concerns:

• Negative Net Current Assets: The company’s current liabilities stand at £20,830 against current assets of only £756, resulting in a substantial net current liability position.
• Decline in Financial Position: Compared to the previous year ending 28 February 2023, where net current assets were positive at £2,802, the company has deteriorated markedly.
• Limited Operational Scale: With only one employee and micro-entity status, the company’s ability to generate revenue and sustain operations appears limited, increasing operational risk.

3. Positive Indicators:

• No Overdue Filings: The company is compliant with statutory filing requirements, with accounts and confirmation statements up to date, indicating sound regulatory adherence.
• Single Controlling Shareholder/Director: Dr. Huria Abdulkadir holds full ownership and directorship, which may support swift decision-making and governance continuity.
• Active Status: The company is currently active and not undergoing liquidation or administration.

4. Due Diligence Notes:

• Investigate the Cause of Negative Working Capital: Review detailed financial statements or management accounts to understand why liabilities have increased and assets declined sharply within the latest accounting period.
• Assess Cash Flow and Credit Terms: Evaluate whether the company has access to external funding or credit lines to cover short-term liabilities or if there are overdue payables.
• Review Business Model and Revenue Streams: Given the dual SIC codes (management consultancy and internet retail), verify the operational activities and revenue generation to ascertain sustainability.
• Confirm Director’s Financial Support: Since the entity is closely held, determine if the director has provided or plans to provide financial support to mitigate solvency risks.