SMILE INVESTMENT HOLDINGS LTD

Executive Summary

Smile Investment Holdings Ltd exhibits a weak financial profile characterized by negative net assets and persistent liquidity shortfalls. The company’s inability to cover current liabilities from current assets indicates high credit risk and insufficient financial resilience. Without clear evidence of financial turnaround or capital support, credit extension is not advisable.

SMILE INVESTMENT HOLDINGS LTD - Analysis Report

Company Number: 13100783

Analysis Date: 2025-07-20 14:38 UTC

1. Credit Opinion: DECLINE
   Smile Investment Holdings Ltd demonstrates a persistently negative net asset position and negative working capital over the past four years, indicating ongoing financial distress. The absence of positive net assets and the lack of liquidity suggest the company is unable to meet its short-term liabilities from current assets. Without evidence of profitability, cash inflows, or capital injection, there is high risk that the company cannot service debt obligations or sustain operations. Credit approval is not recommended unless significant financial restructuring or capital support is confirmed.

2. Financial Strength:
   The company is classified as a micro-entity with minimal asset base: current assets remain steady at approximately £225, while current liabilities consistently exceed £1,580, resulting in net current liabilities of around -£1,359. Total net assets remain negative at the same figure, reflecting accumulated losses or undercapitalization. Shareholders’ funds are negative, indicating no equity cushion. No fixed assets or other significant resources are reported. The financial position shows no improvement year-on-year and signals weak solvency.

3. Cash Flow Assessment:
   Current assets, presumably cash or equivalents, are minimal and insufficient to cover current liabilities. Negative net current assets reveal a liquidity deficit, which implies the company may struggle to meet short-term obligations as they fall due. There is no indication of positive operating cash flows or working capital improvements. The small size and single employee suggest limited operational scale, increasing the risk of cash flow volatility.

4. Monitoring Points:

• Watch for any capital injections or shareholder loans that improve net assets and liquidity.
• Monitor changes in current liabilities to assess if obligations are increasing or being restructured.
• Review subsequent filings for evidence of revenue growth or improved cash flow generation.
• Track management actions or business model changes aimed at turning around financial performance.
• Verify that statutory filings (accounts and confirmation statements) remain current to avoid regulatory risk.