ZORG INDUSTRIAL CONCERN LTD

Executive Summary

Zorg Industrial Concern Ltd is a micro-entity with a stable yet very limited financial base. It maintains a positive but minimal working capital position and modest equity, indicating the company can meet short-term obligations but has little financial flexibility. Credit approval is recommended on a cautious basis with attention to liquidity and compliance monitoring.

ZORG INDUSTRIAL CONCERN LTD - Analysis Report

Company Number: 13591277

Analysis Date: 2025-07-20 13:50 UTC

1. Credit Opinion:
   APPROVE with caution. Zorg Industrial Concern Ltd is a very small micro-entity in the manufacturing sector (jewellery and related articles) with a stable but minimal asset base and working capital. The company demonstrates a positive net asset position and a modest but positive net current asset balance in the latest year. However, the small scale, very limited fixed assets, and minimal working capital cushion indicate limited financial flexibility. The lack of audit and low employee count (1) suggest a simple operation. Credit facilities should be modest and closely monitored, with conditions focusing on maintaining positive liquidity and timely filing compliance.

2. Financial Strength:
   The balance sheet shows total assets less current liabilities of £4,870 at 31 March 2025, slightly down from £5,395 in the prior year. Shareholders’ funds follow the same trend, reflecting modest equity backing. Fixed assets decreased from £6,150 to £4,807, indicating limited investment in long-term assets. Current assets of £4,987 barely exceed current liabilities of £4,924, resulting in a net current asset position of only £63. This very thin working capital margin suggests the company’s financial strength is fragile and vulnerable to cash flow disruptions.

3. Cash Flow Assessment:
   Current assets primarily consist of cash and debtors (though detailed breakdown not provided), while current liabilities are nearly equal in size. The net current assets of £63 indicate that the company has just enough short-term resources to cover immediate liabilities, leaving minimal liquidity buffer. This tight liquidity position raises concerns about the company’s ability to absorb unforeseen expenses or delays in receivables. The absence of significant cash reserves or other liquid assets limits the company’s ability to service additional debt comfortably without operational strain.

4. Monitoring Points:

• Maintain close oversight on liquidity and net current assets to ensure working capital remains positive.
• Monitor changes in fixed assets and equity to detect any erosion of financial foundation.
• Watch for timely filing of accounts and confirmation statements to avoid regulatory penalties.
• Observe any changes in business scale or employee count that could affect operational capacity.
• Review cash flow statements (if available in the future) to assess actual cash generation and debt servicing capability.