SMRC TECHNOLOGIES LIMITED

Executive Summary

SMRC TECHNOLOGIES LIMITED is a start-up micro-entity with a sound initial balance sheet and no financial distress signals. The company exhibits good liquidity and modest equity, supporting a credit approval with routine monitoring. Continued assessment of financial growth and cash flow generation is advised as the business develops.

SMRC TECHNOLOGIES LIMITED - Analysis Report

Company Number: 14499212

Analysis Date: 2025-07-20 16:58 UTC

1. Credit Opinion: APPROVE
   SMRC TECHNOLOGIES LIMITED is a newly incorporated micro-entity engaged in IT consultancy with a clean compliance record and no overdue filings. The company shows a positive net asset position and net current assets as of its first reporting date. Given the single director’s full ownership and control, accountability is clear. While the company is early-stage with limited operating history, there is no indication of financial distress or governance concerns. Credit extension is recommended with standard monitoring due to its nascent status.

2. Financial Strength:
   The company’s balance sheet at 31 March 2023 shows current assets of £33,269 against current liabilities of £10,140, resulting in net current assets of £23,129. Total net assets equal £23,129, reflecting shareholders’ funds entirely composed of capital and reserves. There are no fixed assets or long-term liabilities reported. This indicates a modest but positive equity base and no debt burden, typical for a start-up micro-entity. The absence of borrowings means low financial risk from leverage.

3. Cash Flow Assessment:
   Current assets largely represent cash and receivables, sufficient to cover short-term liabilities with a current ratio above 3. This suggests good liquidity and working capital position. However, with only one employee and limited financial history, cash flow generation capacity remains unproven. Ongoing cash flow should be monitored to ensure continued operational funding and ability to meet obligations as business scales.

4. Monitoring Points:

• Growth in turnover and profitability in subsequent periods to confirm viability.
• Liquidity trends and working capital management as operations expand.
• Timely filing of annual accounts and confirmation statements to maintain compliance.
• Any increase in liabilities or borrowings that might affect leverage and coverage ratios.
• Stability and conduct of director given single control and responsibility.