SM SURVEYING AND CONSULTING LTD

Executive Summary

SM SURVEYING AND CONSULTING LTD is a newly formed, micro-sized surveying business with a solvent balance sheet and adequate working capital at present. Despite limited trading history, the company shows initial financial soundness to support modest credit facilities. Continued monitoring of cash flow generation and compliance filings will be essential to mitigate risk as the business develops.

SM SURVEYING AND CONSULTING LTD - Analysis Report

Company Number: 15220686

Analysis Date: 2025-07-29 12:51 UTC

1. Credit Opinion: APPROVE with caution. SM SURVEYING AND CONSULTING LTD is a micro-entity incorporated recently in October 2023, with its first set of accounts filed for the year ending October 2024. The company demonstrates positive net assets and net current assets, indicating initial financial stability. However, as a newly incorporated entity with limited trading history and only one employee, the credit risk is inherently higher. Approval is recommended with monitoring and possibly small initial credit limits until further trading performance and cash flow data become available.

2. Financial Strength: The balance sheet shows total fixed assets of £5,200 and current assets of £38,035 against current liabilities of £24,856, yielding net current assets of £13,179. After accounting for a small accrual of £280, net assets stand at £18,099, fully represented as shareholders’ funds. This indicates a solvent position with working capital covering short-term obligations by a comfortable margin. The absence of long-term liabilities is positive. However, the absolute size of the balance sheet is small, consistent with a micro-entity, and the limited asset base constrains financial flexibility.

3. Cash Flow Assessment: Current assets mainly represent liquid or near-liquid resources, but details on cash versus receivables or stock are not provided. The positive net current assets imply adequate short-term liquidity to meet immediate liabilities. With only one employee and no complex debt structure, working capital management appears manageable. However, no profit and loss data or cash flow statements are available, so ongoing operating cash generation cannot be confirmed. Close attention to cash inflows and outflows is advised as the company grows.

4. Monitoring Points:

• Trading performance and profitability in future accounting periods to confirm sustainable cash flow.
• Maintenance of positive net current assets and avoidance of excessive short-term borrowing.
• Timely filing of next annual accounts and confirmation statements to ensure compliance and transparency.
• Any changes in director or PSC structure that could affect governance or control.
• Expansion of asset base or introduction of debt that may impact leverage and liquidity ratios.