SMASH N' SLIDE LTD

Executive Summary

SMASH N' SLIDE LTD shows significant balance sheet improvement and strong liquidity, supporting its ability to meet obligations. While the company is small and single-employee, its growing equity and working capital provide a comfortable financial cushion. Conditional approval is recommended with ongoing monitoring of cash flow and sector risks.

SMASH N' SLIDE LTD - Analysis Report

Company Number: 12891217

Analysis Date: 2025-07-29 15:30 UTC

1. Credit Opinion: APPROVE with conditions. SMASH N' SLIDE LTD demonstrates a solid improvement in financial position over recent years, particularly from 2023 to 2024, with net assets more than doubling to £97k. The company operates within event catering and takeaway food sectors, which can be seasonal and competitive but is currently maintaining positive working capital and equity. Approval is recommended provided continued monitoring of cash flow and sector risks, especially given the micro-entity scale and single-employee operation.

2. Financial Strength: The balance sheet shows strengthening financial health. Fixed assets remain stable around £23k-£29k, while current assets have surged from £27.5k in 2023 to £95k in 2024, driving net current assets to £73.6k. The increase in creditors is proportionate and manageable. Shareholders’ funds increased substantially, reflecting retained earnings or capital injection, which enhances the company’s equity buffer to withstand short-term shocks.

3. Cash Flow Assessment: Working capital is strong with net current assets of £73.6k at the last year-end. The company’s current liabilities are low relative to current assets, indicating good liquidity and ability to meet short-term obligations. However, the small scale (one employee) and micro-entity status suggest limited operational scale, so any credit exposure should be sized appropriately to their cash flow capacity.

4. Monitoring Points:

• Confirm ongoing profitability and cash generation in the next trading periods.
• Monitor debtor collection periods and creditor payment terms to ensure working capital remains positive.
• Watch for any sector-related risks such as event cancellations or regulatory changes affecting event catering and takeaway food services.
• Review director conduct and any changes in ownership or control that might affect governance or financial stewardship.