ZONTEK LTD

Executive Summary

ZONTEK LTD is an active private limited company exhibiting high financial risk due to negative net assets and working capital deficits. Despite a recent improvement in cash reserves and timely compliance filings, the substantial related party debts and accumulated losses warrant close scrutiny. Further due diligence should focus on funding arrangements and operational viability to assess the company’s capacity to sustain its business.

ZONTEK LTD - Analysis Report

Company Number: 14790930

Analysis Date: 2025-07-20 12:49 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, as evidenced by negative net assets and net current liabilities. The magnitude of creditors owed, especially to related parties, alongside accumulated losses, indicates a high financial risk.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: Net assets stand at -£24,742 with shareholders’ funds at -£25,742 as of 31 December 2024, reflecting accumulated losses and potential insolvency risk.
• Negative Working Capital: Net current liabilities of £25,365 suggest the company does not have sufficient short-term assets to meet its immediate liabilities, indicating liquidity strain.
• Significant Related Party Creditors: Amounts owed to related parties increased substantially to £75,327, which may raise concerns about reliance on shareholder or director funding and potential conflicts of interest.

3. Positive Indicators:

• Cash Position Improved: Cash increased markedly from £5,148 to £54,437, which provides some short-term liquidity buffer.
• No Filing or Compliance Issues: Accounts and confirmation statements are filed on time with no overdue filings, indicating good compliance and governance practices so far.
• Clear Ownership Structure: Control is concentrated in two directors/shareholders with clear notification of persons with significant control, facilitating accountability.

4. Due Diligence Notes:

• Investigate the nature and terms of related party loans/creditors to assess the sustainability and repayment expectations of these obligations.
• Review the company’s business model and operational plans to understand how it intends to address the accumulated losses and negative working capital.
• Assess any contingent liabilities or off-balance sheet obligations not disclosed in the accounts that could exacerbate financial risk.
• Confirm the reasons for the prior company name change and any impact on business continuity or reputation.
• Evaluate directors’ plans for future financing or capital infusion to restore solvency.