Company Number: 14988195

Analysis Date: 2025-07-29 18:13 UTC

1. Credit Opinion: DECLINE
   Smash Coo Limited is a newly incorporated micro-entity operating in the "Other food services" sector. The financial data for its first accounting period ending July 2024 shows net current liabilities of £748 and negative net assets of the same amount, indicating the company is currently insolvent on a balance sheet basis. The absence of positive working capital and negative shareholders’ funds raise concerns about its capability to meet short-term obligations and service any debt. Given the lack of operational history and weak financial position, credit approval is not advisable without substantial additional security or guarantees.

2. Financial Strength:
   The balance sheet reveals total current assets of £13,804 against current liabilities of £14,552, resulting in a net current liability position of £748. There are no fixed assets reported, and total net liabilities equal the negative shareholders’ funds of £748. This indicates that the company’s capital is eroded and it is reliant on external funding or shareholder support to continue operating. The micro-entity status and exemption from audit limit the depth of financial information, but the reported figures suggest no tangible financial buffer.

3. Cash Flow Assessment:
   There is no direct cash flow statement provided, but the working capital deficit implies a liquidity strain. With liabilities slightly exceeding current assets, the company may face challenges in meeting short-term creditor demands without additional cash injections. The average employee count of three also suggests tight operational cash flow margins. Without evidence of positive cash inflows or capital injections post-year end, liquidity risk is high.

4. Monitoring Points:

• Improvement in net current assets and shareholders’ funds in subsequent filings.
• Timely filing of accounts and confirmation statements to ensure regulatory compliance.
• Evidence of cash flow improvement or capital injections to resolve working capital deficits.
• Operational performance metrics, including revenue growth and profitability for sustainability.
• Director’s ongoing financial stewardship given sole control by Mr. Asad Mahmood.