BLACKSMITH STRATEGIC MARKETING LTD

Executive Summary

BLACKSMITH STRATEGIC MARKETING LTD is a start-up micro-entity with a sound initial financial position featuring positive net assets and strong working capital. While credit is approvable on a conditional basis, ongoing monitoring of trading performance and cash flows is essential to confirm the company’s ability to service debt and sustain operations. The business currently shows low risk but limited operational history.

BLACKSMITH STRATEGIC MARKETING LTD - Analysis Report

Company Number: 14114816

Analysis Date: 2025-07-20 13:48 UTC

1. Credit Opinion: APPROVE with conditions
   BLACKSMITH STRATEGIC MARKETING LTD presents a positive early financial profile with growing net assets and healthy working capital. However, as a micro-entity with no employees and limited trading history since incorporation in 2022, the credit recommendation is conditional on continued financial performance and operational development to demonstrate sustainable cash generation and business viability.

2. Financial Strength:
   The balance sheet shows modest but improving financial strength for a micro-entity. Net assets increased from £7,205 in 2023 to £10,965 in 2024, reflecting retained earnings or capital injection. The company holds low fixed assets (£2,531) and good liquidity with current assets of £14,630 largely exceeding current liabilities of £4,999, resulting in a strong net current asset position of £9,631. Long-term liabilities are minimal (£1,197), supporting a low gearing profile. Overall, the company demonstrates a sound equity base relative to size and stage.

3. Cash Flow Assessment:
   The company’s liquidity appears adequate with current assets nearly three times current liabilities, indicating sufficient working capital to meet short-term obligations. However, the absence of employees and limited operational data suggest cash flow generation is likely dependent on the director or external funding at this point. Close monitoring of actual cash inflows from trading and timely payment of liabilities is recommended to ensure ongoing liquidity.

4. Monitoring Points:

• Revenue and profitability trends as the business matures beyond its start-up phase.
• Cash flow statements or bank statements to verify actual liquidity beyond balance sheet figures.
• Changes in creditor levels or overdue payments which can indicate stress.
• Any changes in director or ownership structure that might impact governance or control.
• Timely filing of accounts and confirmation statements to ensure compliance and transparency.