SMART OFFSHORE LTD

Executive Summary

Smart Offshore Ltd is an early-stage, small private limited company with minimal tangible assets and modest net asset value. Its financial position depends heavily on intra-group funding, with limited independent cash flow visibility. Conditional credit approval is recommended, subject to ongoing group support verification and close monitoring of liquidity and operational cash generation.

SMART OFFSHORE LTD - Analysis Report

Company Number: 13620869

Analysis Date: 2025-07-29 20:43 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Smart Offshore Ltd demonstrates a modest but positive net asset position and has maintained active status without filing overdue. However, the company's financials reflect very limited scale and activity, with net assets of £3,157 as of March 2024, largely driven by a significant amount of prepayments/ accrued income (£53,030) balanced against a sizeable liability to group undertakings (£52,113). This indicates potential reliance on intra-group funding rather than independent cash generation. The absence of employees and minimal fixed assets suggest a nascent or very lean operation. Credit approval should be conditional on confirmation of ongoing support from related entities and clarity on the turnover and cash flow prospects.

2. Financial Strength:
   The balance sheet shows net current assets of £3,156 and net assets of £3,157, up from a nominal £1 the previous year, indicating slight improvement. However, current liabilities are high relative to cash (£59,476 vs £9,602), primarily due to amounts owed to group undertakings (£52,113), which may be repayable on demand though terms are not detailed. The company holds negligible fixed assets (£1) and is classified as a small company with limited operating scale. Overall, the balance sheet is very thin with minimal equity buffer, reflecting a fragile financial position typical of a young private limited company in early stages.

3. Cash Flow Assessment:
   Cash at bank is £9,602, which covers only a fraction of current liabilities. The company shows a substantial prepayment/accrued income asset (£53,030) but without detailed turnover or profit figures, its liquidity remains uncertain. The reliance on intra-group funding and absence of employees indicate limited operational cash inflows. Working capital is positive but marginal (£3,156). Without evidence of consistent cash inflows or external financing, liquidity risk exists if group support is withdrawn.

4. Monitoring Points:

• Monitor turnover and profitability trends to assess operational cash generation.
• Verify the nature, terms, and stability of intra-group liabilities and funding arrangements.
• Track changes in current liabilities, especially trade creditors and tax obligations.
• Watch cash balances relative to liabilities to ensure ongoing liquidity.
• Review director reports for any planned expansion or changes in business model that may affect credit risk.