Company Number: 13105365

Analysis Date: 2025-07-20 12:24 UTC

1. Credit Opinion: DECLINE
   ZOGTECH LTD exhibits a very limited financial profile with micro-entity status, minimal shareholders’ funds (£3,351 in 2023), and a sharp decline in net current assets from £10,302 in 2022 to £3,351 in 2023. The company has no employees and limited turnover evidence, indicating minimal operational scale. The erosion of working capital and equity over the last year raises concerns about sustainability and ability to service debt or credit facilities. Additionally, no audit or detailed financial disclosures limit transparency. Given these factors, the company does not demonstrate sufficient financial strength or stability to support credit extension.

2. Financial Strength:
   The balance sheet is small and weakened over the last year, with net assets shrinking from £8,351 to £3,351. There are no fixed assets reported, and current assets have dropped markedly from £12,711 to £5,286. Current liabilities remain low but relative to assets, the liquidity buffer has reduced significantly. No long-term liabilities are currently reported, which limits leverage risk but also reflects limited financing options. Overall, the company’s financial base is fragile and concentrated in very low cash or receivables.

3. Cash Flow Assessment:
   While detailed cash flow statements are unavailable, the reduction in current assets and net current assets suggests possible cash strain or reduced receivables. The absence of employees and small asset base indicates minimal operational scale and possibly limited revenue generation to support consistent cash inflows. Net working capital remains positive but at a substantially lower level, which may constrain the company’s ability to meet short-term obligations if credit terms tighten or unexpected expenses arise.

4. Monitoring Points:

• Track quarterly or interim updates on cash balances and current assets to detect liquidity trends.
• Monitor any changes in liabilities, particularly any new short-term or long-term debt.
• Watch for signs of increased revenue or operational scale that could improve financial resilience.
• Confirm timely filing of accounts and returns to maintain compliance and transparency.
• Review director actions or new appointments that may impact business strategy or risk profile.