Company Number: SC725021

Analysis Date: 2025-07-20 15:17 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   ZUNE LIMITED is a recently incorporated micro-entity operating in the take-away food sector. The company shows steady growth in its net current assets and net assets over two years, indicating improving financial stability. However, its absolute asset base remains very small (£2,262 net assets as of 31 March 2024), reflecting limited scale and financial buffer. The absence of audited financials is typical for micro-entities but limits deeper assurance. Given its micro size, modest working capital, and early stage of development, credit approval should be conditional on maintaining positive cash flow and timely filing compliance. Lending should be conservative and short-term.

2. Financial Strength:

• The balance sheet shows net current assets of £2,262 (up from £877 previous year), reflecting an increase in current assets from £1,082 to £3,056 and a rise in current liabilities from £205 to £794.
• Net assets equal shareholders’ funds at £2,262, indicating no long-term debt and a clean capital structure.
• The company is debt-free beyond short-term creditors, which reduces financial risk.
• The increase in working capital and shareholder equity suggests organic growth, but the very low absolute figures indicate limited financial strength and resilience to shocks.

3. Cash Flow Assessment:

• Current assets primarily consist of cash and receivables, sufficient to cover current liabilities nearly 3.8 times (£3,056 / £794), indicating good short-term liquidity.
• The increase in current liabilities should be monitored to ensure they remain manageable and are not trending upward unsustainably.
• Average employees increased to 4, suggesting some business expansion which may pressure cash flow if not supported by revenue growth.
• No detailed cash flow statement is available, so liquidity must be inferred from working capital trends and operational context.

4. Monitoring Points:

• Maintain strong working capital ratios and avoid accumulation of overdue payables.
• Monitor future annual accounts for continued growth in net assets and cash balances.
• Watch for compliance with filing deadlines to avoid penalties and regulatory risks.
• Assess management changes closely, particularly since directorship changed in January 2025, to confirm continuity and governance quality.
• Keep under review any increase in current liabilities or debt that could strain liquidity.