ASGARD SECURITY LTD

Executive Summary

Asgard Security Ltd exhibits a fragile financial position with negative equity and working capital deficits, reflecting weak financial strength and likely cash flow constraints. The company’s limited trading history and lack of profitability disclosure increase the risk profile, leading to a decline recommendation for credit extension at this stage. Close monitoring of future financial filings and management stability is essential before reconsidering credit facilities.

ASGARD SECURITY LTD - Analysis Report

Company Number: 14305861

Analysis Date: 2025-07-20 16:58 UTC

1. Credit Opinion: DECLINE
   Asgard Security Ltd is currently trading with net liabilities of £22,136 and negative net current assets of £17,517, indicating an insolvency position on the balance sheet. The company is relatively new (incorporated in August 2022) and classified as dormant in its prior accounting period, suggesting limited trading history or operational performance. The current financials reveal a weakening financial structure with total liabilities exceeding assets, including £26,840 in long-term creditors. The absence of profit and loss account details and the reliance on micro-entity accounting standards limit insight into earnings or cash generation capability. Given the negative equity, working capital deficit, and lack of profitability disclosure, the company presents a high credit risk with limited ability to service new debt or honor commercial credit terms without additional capital injection or operational turnaround.

2. Financial Strength:
   The balance sheet shows fixed assets of £22,221, which are modest and likely insufficient as collateral security. Current assets of £173,364 are outweighed by current liabilities of £190,881, resulting in negative working capital of £17,517. After including long-term liabilities (£26,840), net liabilities stand at £22,136, reflecting erosion of shareholders’ funds. The company’s capital structure is weak, with shareholders’ deficit indicating either accumulated losses or funding through creditors rather than equity. The company employs 25 staff, which is a moderate headcount for a micro/small entity, but operating losses may pressure cash flows and equity further.

3. Cash Flow Assessment:
   Current liabilities exceed current assets, implying potential liquidity pressures. Negative net current assets suggest the company may struggle to meet short-term obligations as they fall due unless it has access to external funding or additional working capital facilities. The lack of profit and loss disclosure prevents assessment of operational cash generation, but the balance sheet indicates reliance on creditor finance. The company’s recent director changes and resignation dates may also hint at potential management instability, which could affect cash flow management and financial controls.

4. Monitoring Points:

• Monitor future filing of full accounts including profit and loss statements to assess operational profitability and cash flow trends.
• Watch for changes in working capital position and liquidity ratios to detect improvement or further deterioration.
• Track director stability and any changes in ownership or control that might affect governance and financial discipline.
• Review any additional borrowing or capital injections that might improve solvency.
• Keep an eye on timely submission of annual returns and accounts to ensure regulatory compliance.