Company Number: SC722955

Analysis Date: 2025-07-20 17:00 UTC

1. Risk Rating: LOW to MEDIUM
   The company shows positive net assets and an improving financial position over two years. It is current with statutory filings and is not in liquidation or administration. However, as a micro-entity with limited disclosure and a relatively short trading history, some caution is warranted.

2. Key Concerns:

• Director Loan Increase: The director loan balance increased significantly from £12,417 to £21,204 within one year, potentially indicating reliance on director funding which may affect cash flow.
• Staff Reduction: Average staff decreased from 35 to 32 employees, which could signal operational adjustments or cost pressures.
• Limited Financial Detail: As a micro-entity, financial statements are unaudited and lack profit and loss information, restricting insight into operational profitability and cash flow dynamics.

3. Positive Indicators:

• Strong Net Asset Growth: Net assets increased from £20,914 to £50,950, reflecting balance sheet strengthening.
• Positive Working Capital: Current assets comfortably exceed current liabilities, indicating liquidity to meet short-term obligations.
• Timely Compliance: No overdue filings and up-to-date accounts and confirmation statements show good regulatory compliance.
• Single Controlling Shareholder: Clear ownership and control by one director may streamline decision-making.

4. Due Diligence Notes:

• Review detailed cash flow statements if available to assess operational liquidity beyond balance sheet figures.
• Clarify the nature and terms of the director loan to understand repayment expectations and impact on financial stability.
• Investigate reasons behind staff reduction and whether it relates to business contraction or efficiency improvements.
• Confirm no undisclosed contingent liabilities or off-balance sheet risks given limited disclosures.
• Assess client contracts and revenue stability in the private security sector to gauge operational sustainability.