Company Number: 13132419

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

1. Risk Rating: MEDIUM
   Justification: SMR Realty Limited shows minimal net current assets (£43 as of March 2024) and a consistent pattern of low working capital, indicating limited short-term financial flexibility. The company is small, with modest capital and limited asset base, which could constrain its ability to absorb financial shocks. However, there is no indication of overdue filings or direct insolvency risk at this stage.

2. Key Concerns:

• Thin Liquidity Buffer: Net current assets declined significantly from £333 in 2023 to £43 in 2024, pointing to tightening liquidity and potential difficulty meeting short-term obligations if liabilities increase.
• Negative Retained Earnings: Accumulated losses (retained earnings of -£957 in 2024) suggest the company has not generated sufficient profits historically to build reserves, impacting solvency and reinvestment capacity.
• Limited Asset and Capital Base: Total share capital remains at a nominal £1,000 with debtors and creditors roughly balancing, indicating a fragile capital structure and limited financial resources to support growth or withstand downturns.

3. Positive Indicators:

• Compliance and Filing Status: The company is up to date with accounts and confirmation statement filings, showing good regulatory compliance and governance in this regard.
• Active Status with Directors in Place: The company is active and has three current directors with no reported disqualifications or governance red flags.
• Stable Debtor Position: Debtors remain steady at £1,000 over the years, indicating some consistency in receivables management.

4. Due Diligence Notes:

• Investigate the nature and collectability of debtors (£1,000) since amounts are small but consistent; verify if these are trade receivables or related party balances.
• Review creditor composition and payment terms to assess liquidity strain and short-term cash flow dynamics.
• Examine the company’s business model and revenue streams given the SIC code 68100 (buying and selling own real estate) and the low asset base to determine sustainability and growth prospects.
• Explore the relationship and financial dependence on the ultimate controlling party, SMR Global Group Limited, for potential financial support or exposure.
• Assess the impact of accumulated losses on future profitability and capital requirements.