242 GROUP LTD

Executive Summary

242 Group Ltd is a micro-entity operating in the UK security systems service sector at an early stage of development, showing improvement from prior net liabilities but still facing working capital challenges. The company is positioned as a niche player amid a competitive and technology-driven market, with growth potential hinging on scaling operations and adapting to evolving security technology demands. Strengthening financial health and expanding service capabilities will be critical for 242 Group Ltd to enhance its competitive standing within the sector.

242 GROUP LTD - Analysis Report

Company Number: 14336295

Analysis Date: 2025-07-29 14:05 UTC

1. Industry Classification
   242 Group Ltd operates under SIC code 80200, classified as "Security systems service activities." This sector primarily involves the installation, maintenance, and monitoring of electronic security systems including alarms, CCTV, access control, and related services. It is a specialized niche within the broader security industry, characterized by a mix of technology integration, service contracts, and regulatory compliance, often serving commercial, residential, and governmental clients.

2. Relative Performance
   As a micro-entity with fixed assets of £92k and current assets of £102k against current liabilities of £190k (2024 data), 242 Group Ltd shows modest scale and a significant working capital deficit (£-87k). However, the company improved from a net liability position of £127k the previous year to a small positive net asset position of £4.9k. Compared to typical benchmarks in the UK security systems sector, where established SMEs often maintain positive working capital and stronger equity, 242 Group Ltd is in an early growth or recovery phase. The micro classification indicates limited turnover and staffing, consistent with a start-up or small niche provider, not yet achieving economies of scale or robust cash flows typical of medium firms in this sector.

3. Sector Trends Impact
   The UK security systems sector is influenced by increasing demand for integrated smart security solutions, driven by rising security concerns, technological advancements (IoT, AI-enabled surveillance), and regulatory requirements. The COVID-19 pandemic accelerated remote monitoring and contactless access trends, which continue to shape service offerings. However, the sector is competitive with price pressures and reliance on recurring service contracts for stable revenue. Emerging cybersecurity threats also push traditional physical security firms to adapt and diversify. For 242 Group Ltd, these trends offer growth opportunities but also require investment in technology and skilled personnel, which may explain current financial constraints.

4. Competitive Positioning
   242 Group Ltd is a niche player, likely targeting specialized or localized markets given its micro status and limited employee base (one average employee reported). Strengths include ownership stability with a controlling shareholder (Mr. Jean-Sebastien Bouchard) and a focused management team with backgrounds in security, suggesting operational expertise. Weaknesses include limited scale, negative working capital position, and recent financial losses, which could restrict the ability to bid for larger contracts or invest in innovation. Compared to typical competitors—ranging from large PLCs to medium-sized private firms with broader service portfolios and stronger balance sheets—242 Group Ltd is at a nascent stage, needing to improve financial resilience and scale to compete effectively.