865 CYBER SECURITY LIMITED

Executive Summary

865 Cyber Security Limited is a micro-entity showing early signs of financial recovery after two years of negative net assets. While compliance and industry focus are positives, the very low asset base and limited scale present medium risk from a solvency and liquidity perspective. Further investigation into cash flows and operational stability is recommended before investment.

865 CYBER SECURITY LIMITED - Analysis Report

Company Number: NI690490

Analysis Date: 2025-07-20 11:05 UTC

1. Risk Rating: MEDIUM
   The company has moved from negative net current assets and shareholders' funds in 2023 to positive figures in 2024, indicating some improvement in solvency. However, the absolute values remain very low, reflecting limited financial buffer and potential vulnerability.

2. Key Concerns:

   • Very Low Asset Base: Current assets of only £744 against liabilities of £359 in 2024 provide minimal working capital to absorb any unexpected costs.
   • Prior Year Losses: The company reported negative net current assets and shareholders' funds (£-583) in both 2022 and 2023, which could indicate past operational or cash flow difficulties.
   • Limited Scale and Resources: Being a micro-entity with only one employee limits operational capacity and may constrain business growth or ability to handle financial stress.

3. Positive Indicators:

   • Recent Improvement: The turnaround to positive net current assets and shareholders' funds in 2024 suggests some operational or financial recovery.
   • Compliance Up to Date: No overdue filings or accounts; the company appears compliant with statutory requirements.
   • Focused Industry: Operating within IT consultancy and information technology services, which typically have low fixed asset requirements and flexible cost structures.

4. Due Diligence Notes:

   • Review detailed cash flow statements (not provided) to understand liquidity trends and sources of funds.
   • Investigate the cause of prior years’ negative equity and measures taken to restore financial health.
   • Assess contracts, client base, and revenue streams to evaluate sustainability and any concentration risks.
   • Verify director background and governance practices given the company’s small size and financial volatility.
   • Confirm whether there is any external financing or shareholder support underpinning the recent positive position.