SMITH'S SALVAGE SERVICES LIMITED

Executive Summary

Smith’s Salvage Services Limited is a small, owner-managed enterprise with a positive net asset base and sufficient working capital to meet its short-term obligations. The company demonstrates consistent financial stability and prudent management, supporting an approval for credit facilities with routine monitoring of liquidity and business activity recommended.

SMITH'S SALVAGE SERVICES LIMITED - Analysis Report

Company Number: 13509236

Analysis Date: 2025-07-29 16:07 UTC

1. Credit Opinion: APPROVE
   Smith’s Salvage Services Limited exhibits a stable financial position typical of a micro-entity with low risk. The company maintains positive net assets and modest working capital, indicating it can meet short-term obligations. No overdue filings or adverse director records are noted. While the scale is small and growth moderate, the business appears well-managed by its sole director with full ownership control, supporting credit reliability for typical lending needs.

2. Financial Strength:
   The balance sheet shows incremental growth in fixed assets and current assets from 2021 through 2024. Net assets improved from £538 in 2021 to £2,358 in 2024, reflecting retained earnings and capital injection. Current liabilities remain manageable relative to current assets, producing positive net current assets (£377 in 2024). Absence of long-term debt strengthens the capital structure, minimizing solvency risk.

3. Cash Flow Assessment:
   Working capital is positive but has decreased from £665 in 2023 to £377 in 2024, suggesting some tightening of liquidity. Current assets largely consist of cash, receivables, or stock adequate to cover short-term liabilities. The company’s single-employee model and small scale reduce fixed overheads, supporting cash flow sufficiency. No significant accruals or deferred income reported to complicate liquidity.

4. Monitoring Points:

• Monitor working capital trends to detect any liquidity strain, especially if current liabilities increase.
• Watch for changes in shareholder funding or capital injections that support expansion or cover losses.
• Track business activity in motor vehicle parts trade sectors for market or competitive impacts.
• Review director’s trading history annually for any signs of financial stress or governance issues.