SMART PRACTICAL ACCOUNTING TRAINING LTD

Executive Summary

SMART PRACTICAL ACCOUNTING TRAINING LTD shows deteriorating financial health with persistent negative net assets and poor liquidity, raising significant credit risk. The company’s inability to cover short-term liabilities and negative working capital position suggests a decline in financial resilience. Credit facilities are not recommended at this stage without clear evidence of turnaround or additional security.

SMART PRACTICAL ACCOUNTING TRAINING LTD - Analysis Report

Company Number: 13153910

Analysis Date: 2025-07-20 14:57 UTC

1. Credit Opinion: DECLINE
   SMART PRACTICAL ACCOUNTING TRAINING LTD exhibits a weak financial position with consistent net liabilities and negative working capital. The company’s current liabilities significantly exceed its current assets, indicating poor short-term liquidity and an inability to cover immediate debts. The negative equity position worsened from £-606 in 2023 to £-1,982 in 2024, which undermines its capacity to meet financial obligations. Given these factors and the micro entity status with minimal operational scale, extending credit would be high risk without substantial improvement or additional security.

2. Financial Strength:
   The company’s balance sheet reveals net current liabilities of £1,982 as of 31 January 2024, worsening from £606 the previous year. Total net assets and shareholders’ funds are both negative, reflecting accumulated losses and a lack of financial cushion. Fixed assets are not reported, and the company’s capital base is minimal (£100 share capital). These indicators point to structural financial weakness and limited capacity to absorb shocks or fund growth.

3. Cash Flow Assessment:
   Liquidity is a concern with current assets of only £142 against current liabilities of £2,124. The negative net current assets position suggests the company may struggle to finance day-to-day operations without external support. The absence of detailed cash flow statements limits precise analysis, but the working capital deficit and negative equity strongly indicate cash flow constraints.

4. Monitoring Points:

• Improvement in net current assets and liquidity ratios.
• Movement of net assets towards positive territory.
• Any capital injections or external financing arrangements that improve solvency.
• Trends in turnover and profitability if available in future filings.
• Director’s actions to strengthen financial controls or restructure liabilities.