RMSMITH CONSULTING LTD

Executive Summary

RMSMITH CONSULTING LTD, a micro private IT consultancy with a strong net asset base and healthy working capital, shows sound initial financial strength and liquidity to support modest credit facilities. While early-stage trading limits historical performance data, current financials indicate the company can meet short-term obligations. Continued monitoring of cash flow and operational performance is recommended to ensure ongoing creditworthiness.

RMSMITH CONSULTING LTD - Analysis Report

Company Number: SC761716

Analysis Date: 2025-07-29 19:02 UTC

1. Credit Opinion: APPROVE
   RMSMITH CONSULTING LTD is a newly incorporated micro private limited company operating in the IT consultancy sector. The latest accounts to 31 March 2024 show a strong net asset position and positive working capital, indicating a solid financial base with no immediate liquidity concerns. The company is active, compliant with filing deadlines, and managed by directors with relevant experience. Given its early stage, credit exposure should be moderate, but the company demonstrates sufficient initial financial strength to service typical credit facilities.

2. Financial Strength:
   The balance sheet reveals total assets less current liabilities of £119,799 and net assets of £118,704. Fixed assets are minimal (£311), which is normal for a consulting business with limited capital expenditure. Current assets of £167,940 exceed current liabilities of £48,452 by a large margin, resulting in net current assets (working capital) of £119,488. Equity funding is adequate for the size and scale of operations, and there is no indication of external debt that might pressure cash flows.

3. Cash Flow Assessment:
   Current assets largely consist of cash or receivables, supporting liquidity. The company has positive net current assets, implying it can meet short-term liabilities comfortably. With only two employees and limited fixed assets, cash outflows for overhead are likely modest. However, as a micro entity with a short trading history, ongoing monitoring of cash conversion from receivables and timely payment of creditors will be essential to ensure stable cash flow.

4. Monitoring Points:

• Trading performance and profitability in subsequent periods to confirm sustainable cash generation.
• Debtor aging and creditor payment terms to maintain healthy working capital cycles.
• Any increase in liabilities or capital expenditure that might impact liquidity.
• Changes in director composition or control that could affect management stability.
• Compliance with future filing deadlines and any emerging financial obligations.