SSMITHS PROPERTY SOLUTIONS LTD

Executive Summary

SSMITHS PROPERTY SOLUTIONS LTD shows signs of financial distress with consistent net liabilities and negative working capital, posing solvency and liquidity risks. Although compliance with statutory filings is maintained and there is slight financial improvement, the company’s reliance on director loans and ongoing losses raise concerns about operational sustainability. Further investigation into cash flows and funding arrangements is recommended to assess recovery prospects.

SSMITHS PROPERTY SOLUTIONS LTD - Analysis Report

Company Number: 14316711

Analysis Date: 2025-07-29 13:04 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks, evidenced by persistent net liabilities and negative working capital over the last three reported years. There is no indication of profitability or equity improvement, raising concerns about the company’s ability to meet obligations and sustain operations.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company has recorded negative net assets of £3,045 as of August 2024, improving slightly from a negative £6,436 the prior year but still indicating insolvency on a balance sheet basis.
• Negative Working Capital: Current liabilities (£12,776) exceed current assets (£10,014) by £2,762, pointing to liquidity stress and potential cash flow issues.
• Dependence on Director’s Loan: Debtors include a significant director’s loan account (£4,154), suggesting reliance on related party financing rather than operational cash flow.

3. Positive Indicators:

• Active Status with Up-to-Date Filings: The company is active with no overdue accounts or confirmation statements, showing compliance with filing and governance requirements.
• Slight Improvement in Financial Position: There is a modest reduction in net liabilities and current liabilities compared to the previous year, which may indicate some operational or financial stabilization.
• Low Fixed Assets and Depreciation: Limited fixed assets and controlled depreciation reduce capital expenditure pressure.

4. Due Diligence Notes:

• Investigate the nature and terms of director’s loans and other related party transactions to understand funding sustainability.
• Review cash flow statements and management accounts (if available) for liquidity trends and operational cash generation capacity.
• Assess business model viability given persistent losses and negative equity, including revenue streams and cost structure.
• Confirm there are no undisclosed contingent liabilities or regulatory compliance issues beyond Companies House filings.