Company Number: 12936449

Analysis Date: 2025-07-20 14:29 UTC

1. Risk Rating: MEDIUM

Justification: SM Meat Ltd shows ongoing operations with active filing compliance and a stable director structure. However, the company consistently exhibits negative net current assets (working capital deficits) over recent years, indicating potential liquidity pressures. Net assets and shareholders’ funds remain positive but are minimal. The business is small-scale and limited in capital, which heightens sensitivity to cash flow variability and operational disruptions.

2. Key Concerns:

• Negative Net Current Assets: The company has had a working capital deficit for at least three consecutive years (2022–2024), signaling cash flow constraints and possible difficulty meeting short-term liabilities.
• Low Cash Balances: Cash on hand declined from £6,053 in 2021 to £1,576 in 2024, which may not be sufficient to cover immediate expenses or unexpected costs.
• Minimal Equity Base: Shareholders’ funds remain low (£174 in 2024), limiting financial flexibility and capacity to absorb losses or invest in growth.

3. Positive Indicators:

• Compliance: The company has filed accounts and confirmation statements on time, indicating adherence to regulatory requirements and sound governance practices.
• Consistent Director and Ownership: The sole director, Mustafa Sarilmaz, has been in place since incorporation with full ownership and control, providing stable leadership and clear accountability.
• Tangible Assets Present: The company maintains tangible fixed assets (plant and machinery) which, although small in value (£540 in 2024), contribute to operational capacity.

4. Due Diligence Notes:

• Investigate the company's cash flow management and plans to address the persistent working capital deficits.
• Review detailed profit and loss accounts (not filed publicly due to small company exemption) to assess profitability trends and cost structure.
• Assess the nature of the creditors, especially the tax and social security liabilities, to understand payment terms and any potential overdue obligations.
• Clarify the strategic outlook and growth plans to identify how the company intends to improve its financial position.
• Confirm no director disqualifications or regulatory breaches beyond the publicly available information.