SMART USE LTD

Executive Summary

SMART USE LTD is a newly formed micro-entity with a weak financial profile characterized by negative net assets and significant liquidity shortfalls. The company currently lacks the financial resources and cash flow to support credit facilities, leading to a recommendation to decline credit at this stage. Close monitoring of financial improvements and capital support is essential before reconsidering credit exposure.

SMART USE LTD - Analysis Report

Company Number: 14564544

Analysis Date: 2025-07-20 13:59 UTC

1. Credit Opinion: DECLINE
   SMART USE LTD shows a negative net asset position of £26,244 as of its latest accounts dated 31 December 2023. The company is a micro-entity incorporated recently (December 2022) and has no employees besides the director. The current liabilities significantly exceed current assets, indicating poor liquidity and an inability to meet short-term obligations without additional funding. No evidence of revenue or profitability is presented, and the negative equity position suggests accumulated losses or initial funding shortfall. Given these factors, the company currently lacks the financial strength and cash flow capacity to service debt or honor commercial credit commitments reliably.

2. Financial Strength:
   The balance sheet reveals net current liabilities of £26,244 and total net liabilities of the same amount, reflecting a weak financial position. The absence of fixed assets and minimal current assets (£2,125) compared to current liabilities (£28,369) highlights a lack of tangible resources or working capital. Shareholders' funds are negative, indicating the company is undercapitalized or has incurred losses that erode equity. The micro-entity size and recent incorporation mean limited financial history, but the current snapshot portrays financial vulnerability.

3. Cash Flow Assessment:
   Working capital is deeply negative, which points to potential cash flow constraints. Without positive net current assets or external funding, the company is unlikely to cover maturing liabilities from operating cash flow. The accounts do not disclose turnover or profit figures, but given the negative equity and net current liability position, cash inflows are probably insufficient to meet short-term debts. The company’s liquidity risk is high.

4. Monitoring Points:

• Track improvements in net current assets and reduction of liabilities to improve liquidity.
• Monitor any capital injections or shareholder funding to offset negative equity.
• Review upcoming accounts and confirmation statement filings for signs of operational progress or deterioration.
• Watch for director changes or any formal insolvency procedures.
• Seek evidence of revenue generation or profitability in subsequent periods.