Company Number: 12892244

Analysis Date: 2025-07-20 17:47 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Smith Apps Limited demonstrates a stable and improving net current asset position with positive net assets and no overdue filings, indicating reasonable financial discipline. However, as a micro entity with limited fixed assets and no profit and loss data disclosed, the assessment is cautious. Approval is conditional on continued maintenance of liquidity and monitoring of cash flow, given the relatively modest asset base and the company's young age (incorporated 2020). Management appears stable with no adverse records.

2. Financial Strength:
   The company’s balance sheet shows net assets of £38,987 as at 31 December 2024, up from £29,576 in 2023, reflecting a positive trajectory. The increase in net current assets from £18,762 to £38,987 suggests improved working capital management. Fixed assets declined to zero in 2024 from £11,283 the prior year, indicating possible asset disposals or reclassification. Overall, the company maintains a healthy equity base relative to liabilities, with shareholders’ funds fully supporting net assets.

3. Cash Flow Assessment:
   Current assets of £97,893 against current liabilities of £58,906 yield a positive net current asset position (£38,987), supporting adequate short-term liquidity. Cash appears to be a significant component of current assets historically, though exact cash figures for 2024 are not disclosed. The increase in current liabilities year-on-year demands attention but remains manageable. Working capital is sufficient for operational needs, but ongoing cash flow monitoring is advised due to limited fixed assets and lack of detailed profit & loss disclosure.

4. Monitoring Points:

• Track cash balances and cash flow statements regularly to ensure sufficient liquidity for debt servicing.
• Monitor creditor days and current liabilities trends to avoid tightening working capital.
• Review profit and loss trends once available to assess earnings stability and capacity to generate internal funds.
• Watch for any significant changes in ownership or director appointments that might impact governance or financial strategy.