SMARTROOT LTD

Executive Summary

Smartroot Ltd is a newly formed company exhibiting a weak financial position with negative net assets and insufficient liquidity. The absence of operational history and current working capital deficit pose significant credit risks. Approval of credit facilities is not recommended at this stage without substantial financial support or evidence of business viability.

SMARTROOT LTD - Analysis Report

Company Number: 15244352

Analysis Date: 2025-07-29 15:53 UTC

1. Credit Opinion: DECLINE. Smartroot Ltd is a newly incorporated private limited company with minimal financial history. Its first set of accounts reveals net liabilities of £19 and negative shareholders’ funds, indicating an immediate shortfall in capital. Current liabilities exceed current assets, resulting in a negative working capital position. The company’s cash balance is negligible (£10), insufficient to cover short-term obligations. Given the lack of operational track record and poor initial financial position, the company currently lacks the capacity to service debt or sustain credit facilities without significant external support or capital injection.

2. Financial Strength: The balance sheet is weak, with net assets at negative £19 and shareholders’ funds also negative. The company has no fixed assets and only £10 in cash against £29 in current liabilities, reflecting a net current liability position of £19. This indicates limited financial resilience and an inability to absorb operational or economic shocks. The capital structure relies solely on minimal share capital (£1), and accumulated losses have depleted equity. No tangible or intangible assets are reported, limiting collateral value for lending purposes.

3. Cash Flow Assessment: Liquidity is critically constrained. Cash on hand is nominal, and the company has no reported receivables or stock to convert into cash. Negative net current assets highlight an immediate working capital deficit, which undermines operational flexibility. Given the company’s early stage and lack of turnover details, current cash flow generation appears insufficient to meet short-term liabilities or debt service. Close monitoring of cash inflows and financing arrangements is essential.

4. Monitoring Points:

• Turnover and profitability trends in subsequent accounts to assess operational viability.
• Cash flow statements to verify liquidity improvements.
• Changes in working capital, including receivables and payables management.
• Capital injections or external funding events that could bolster financial stability.
• Director and shareholder actions regarding financial restructuring or business model adjustments.