1ST LOOK FIRE & SECURITY SOLUTIONS LIMITED

Executive Summary

1st Look Fire & Security Solutions Limited, as a start-up, shows a solid financial foundation with positive net assets and working capital, indicating early business viability. However, low cash reserves highlight the need for improved liquidity management to ensure smooth operational flow. With prudent financial controls and strategic growth, the company is well positioned to strengthen its financial health in the coming years.

1ST LOOK FIRE & SECURITY SOLUTIONS LIMITED - Analysis Report

Company Number: 15729296

Analysis Date: 2025-07-29 17:26 UTC

Financial Health Assessment: 1st Look Fire & Security Solutions Limited

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1. Financial Health Score: B

Explanation:
Given that 1st Look Fire & Security Solutions Limited is a newly incorporated company (May 2024) with its first financial year ending May 2025, the financial data reflects a start-up phase. The company shows positive net current assets, a healthy working capital position, and positive shareholders’ funds, indicating a stable financial foundation. However, limited operational history and low cash balance constrain a higher grade. The score “B” reflects a sound but developing financial health.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	29,623	Mainly trade debtors (£29,281), signifies revenue earned but cash collection pending.
Cash at Bank	342	Very low cash on hand, potential liquidity concern—“thin blood flow” warning sign.
Current Liabilities	13,104	Obligations due within one year, manageable given current assets.
Net Current Assets	16,519	Positive working capital—“healthy cash flow” indicator, ability to meet short-term obligations.
Net Assets / Shareholders’ Funds	16,519	Equity base built from retained earnings, indicates business is solvent and capitalised.
Share Capital	1	Minimal initial capital, typical for start-ups relying on operational profitability.
Number of Employees	1	Very small scale, reflects micro-business status.
Company Age	~1 year	Early stage, financial performance is preliminary.

Interpretation:

• The company has successfully generated receivables, indicating market activity (“symptom of business traction”).
• The “thin” cash balance is a symptom of cash flow timing gaps; careful monitoring of cash inflows and outflows is essential.
• Current liabilities are well covered by current assets, showing no immediate liquidity distress.

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3. Diagnosis

The company is in its infancy and shows promising signs of financial stability. Positive net current assets and shareholders' funds indicate the business is solvent and has built some retained earnings despite limited capital input. The predominant composition of current assets as trade debtors suggests that revenue is recognized but cash conversion is pending, which is typical in early operations but requires active credit control to avoid cash flow “blockages.”

The low cash balance is a “symptom” that warrants attention; without sufficient liquidity, the company may face challenges meeting immediate expenses, even though net working capital is positive. The small scale of operations (one employee) and the absence of audit requirements reflect a lean structure but also limited operational depth and financial history.

Overall, the financial “vital signs” indicate a stable but nascent financial condition, with early signs of business viability yet requiring cautious management of cash and receivables.

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4. Recommendations

1. Improve Cash Flow Management:

   • Accelerate debtor collections through stricter credit terms and follow-up processes to convert receivables into cash faster.
   • Maintain a cash buffer to avoid “cash flow anemia” which can cripple day-to-day operations.

2. Build Capital Reserves:

   • Consider increasing share capital or securing additional funding to strengthen the equity base and provide liquidity.
   • This will provide resilience against unforeseen expenses and support growth investments.

3. Monitor Liabilities Closely:

   • Keep track of short-term creditors and tax obligations to prevent overdue payments that could damage supplier relationships or incur penalties.

4. Strategic Growth Planning:

   • As a micro-business in the security systems service industry, focus on scaling operations prudently while maintaining tight financial controls.
   • Explore opportunities to diversify the customer base and improve profit margins.

5. Regular Financial Reviews:

   • Conduct monthly cash flow forecasts and financial health check-ups to detect early symptoms of distress and respond promptly.

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