SMART BOX TECHNOLOGY LTD

Executive Summary

Smart Box Technology Ltd is a recently established small engineering company with a fragile financial position characterized by negative working capital and minimal cash reserves. While current filings are up to date, the company relies on director loans and faces liquidity risks that warrant conditional credit approval with close monitoring of cash flow and liabilities. Continued financial support should depend on improvements in working capital management and confirmed ability to service debts.

SMART BOX TECHNOLOGY LTD - Analysis Report

Company Number: 13953358

Analysis Date: 2025-07-20 14:48 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Smart Box Technology Ltd is a very young small private company engaged in engineering activities. The latest balance sheet shows net current liabilities and very low net assets (£127), reflecting modest financial strength. The company has shareholder loans outstanding from directors, indicating reliance on related party funding. Cash reserves are minimal (£93), and current liabilities exceed current assets, signaling short-term liquidity pressure. While the company is active and filings are up to date, the financial position is fragile with a negative working capital position. Approval is possible but should be conditional on monitoring cash flow closely and confirming the ability to meet debt obligations as they fall due.

2. Financial Strength:
   The company’s net assets have decreased sharply from £1,285 in 2023 to £127 in 2024, primarily driven by an increase in current liabilities (notably tax and social security liabilities increased to £21,439). Fixed assets are small (£2,015 net book value of computer equipment). The retained earnings have diminished significantly, indicating losses or distributions exceeding profits. The capital base is minimal (£2 share capital). Overall, the balance sheet is weak with limited buffer to absorb financial shocks.

3. Cash Flow Assessment:
   Cash on hand is negligible at £93, down from £12,900 the previous year. Debtors have increased significantly to £23,868, which may indicate slow collection or credit extension to customers. Current liabilities of £25,466 exceed current assets of £23,961 by £1,505, resulting in a negative working capital position. The company has director advances (loans) of £23,800, which provides some internal liquidity but also indicates dependence on these loans for funding. The limited cash and negative working capital raise concerns about short-term liquidity and the company’s ability to meet immediate obligations without further injections or improved collections.

4. Monitoring Points:

• Monitor cash flow and working capital closely, especially debtor collection and creditor payments.
• Track tax and social security liabilities to avoid accumulation and potential enforcement action.
• Review director loan balances and any repayments or further advances.
• Watch for changes in retained earnings and net assets to detect financial deterioration.
• Assess turnover and profitability trends when income statements become available to confirm business viability.