Company Number: 14157166

Analysis Date: 2025-07-29 20:10 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   SMOKEY YARD LTD is a recently incorporated micro-entity with a turnaround from negative net assets (£-5,331 in 2023) to positive net assets (£3,497 in 2024). This improvement signals initial recovery and better financial management, but the company's absolute size and short trading history limit credit exposure. The relatively low fixed assets and modest current assets compared to current liabilities indicate some liquidity risk, requiring close monitoring and possibly credit limits tied to cash flow performance.

2. Financial Strength:
   The balance sheet shows fixed assets of £6,467 and current assets of £3,229 against current liabilities of £6,199 as of 30 June 2024. The net current assets position is negative at £-2,970, but total net assets are positive at £3,497 due to tangible fixed assets. The company improved from a net liability position in the prior year, suggesting better capital structure or debt reduction. However, the low asset base and micro-entity status means limited collateral value.

3. Cash Flow Assessment:
   Current liabilities are slightly less than current assets, resulting in a net working capital deficit. This indicates potential short-term liquidity constraints. The company only employs 2 staff and operates in a specialised retail niche which may impact cash flow stability seasonally. Without full cash flow statements, the working capital position suggests the company should maintain tight control over payables and receivables to avoid liquidity shortfalls.

4. Monitoring Points:

• Maintain updated accounts to observe if net assets and working capital improve or deteriorate.
• Monitor trade payables and receivables cycles closely for liquidity pressures.
• Watch operational cash flow and profitability trends in subsequent filings.
• Track any increase in borrowings or overdrafts that could strain finances.
• Ensure directors maintain effective financial controls given small scale and early stage.