AK GUARDFORCE SECURITY LTD

Executive Summary

AK GUARDFORCE SECURITY LTD has demonstrated a notable recovery in financial position in the latest year, moving from net liabilities to net assets. However, the company remains a micro-entity with limited equity and operational scale, which poses moderate risk. Investors should focus on verifying the sustainability of improved liquidity and the robustness of the business model before proceeding.

AK GUARDFORCE SECURITY LTD - Analysis Report

Company Number: 13012389

Analysis Date: 2025-07-20 14:20 UTC

1. Risk Rating: MEDIUM
   Justification: The company has shown a significant recovery from negative net assets and net current liabilities in 2022 to positive net assets and net current assets in 2023. However, the small scale of operations, minimal share capital, and prior periods of insolvency indicators suggest some ongoing financial risk.

2. Key Concerns:

• Volatility in Net Assets and Working Capital: The company moved from net liabilities of £3,941 in 2022 to net assets of £3,307 in 2023, indicating prior financial distress and recent improvement. Such volatility may point to inconsistent cash flows or capital injections.
• Minimal Share Capital: Share capital is only £1, which is very low and indicates limited equity buffer to absorb losses or fund operations.
• Limited Scale and Employee Base: With only one employee and micro-entity status, the business may be vulnerable to operational disruptions and may lack diversification or scalability.

3. Positive Indicators:

• Improved Liquidity Position: Current assets increased significantly from £907 in 2022 to £18,705 in 2023, improving net current assets from negative £4,841 to positive £2,707, suggesting better short-term liquidity.
• No Overdue Filings: Both accounts and confirmation statements are up to date, reducing regulatory compliance risk.
• Consistent Directorship: Single director has been in place since incorporation, which may imply stable management.

4. Due Diligence Notes:

• Investigate the Source of Improved Current Assets: The substantial increase in current assets in 2023 should be examined to determine if it is sustainable revenue, capital injection, or temporary factor.
• Review Cash Flow Statements: To assess operational cash generation and identify any liquidity pressures not evident from the balance sheet alone.
• Assess Business Model Viability: Given micro-entity scale and single employee, evaluate client base, contract terms, and market positioning in private security sector (SIC 80100).
• Confirm No Director Issues: While no disqualifications are noted, further checks on director background and potential related party transactions would be prudent.