Company Number: 12739866

Analysis Date: 2025-07-29 12:51 UTC

1. Credit Opinion: APPROVE. A.M.M SECURITY SERVICE LTD demonstrates a marked improvement in its financial position over the past two years, with net assets increasing from £4,013 in 2022 to £67,263 in 2024. The company is active in the private security sector and maintains a modest but positive working capital position. No red flags such as overdue filings or director disqualifications are present. The director has maintained compliance with statutory requirements and the company is not in liquidation or administration. The credit risk is low given the current financial strength and liquidity.

2. Financial Strength: The balance sheet shows a healthy and improving net asset base, rising from £4,013 in 2022 to £67,263 in 2024, indicating growth in retained earnings or capital injection. Notably, fixed assets were £33,100 in 2022 but are not reported in 2024, suggesting possible disposal or reclassification, yet current assets have increased significantly to £88,254. Current liabilities have fallen sharply from £63,284 in 2023 to £20,991 in 2024, enhancing net current assets to a positive £67,263. Shareholders’ funds reflect this improvement, indicating sound equity backing.

3. Cash Flow Assessment: The company has strong liquidity with current assets roughly four times current liabilities, suggesting comfortable coverage of short-term obligations. The transition from negative working capital in prior years to a positive £67,263 supports operational stability and the ability to service debt or meet credit terms. The absence of long-term liabilities or provisions enhances cash flow certainty. However, as a micro-entity, detailed cash flow statements are not available; thus, ongoing monitoring of cash generation and debtor management is advised.

4. Monitoring Points:

• Monitor debtor aging and cash collection to ensure working capital remains positive.
• Track trends in fixed assets and capital expenditures to understand asset base changes.
• Review annual accounts for any emerging liabilities or credit facilities that could impact liquidity.
• Keep an eye on sector conditions in private security services that could affect revenue stability.
• Confirm continued compliance with filing deadlines and directorship status.