BARKER FIRE & SECURITY LIMITED

Executive Summary

Barker Fire & Security Limited is a start-up with positive net assets and working capital but limited cash reserves and significant lease liabilities. The company shows initial profitability and shareholder support but requires close cash flow management to meet future obligations. Conditional credit approval is recommended with ongoing monitoring of liquidity and business growth indicators.

BARKER FIRE & SECURITY LIMITED - Analysis Report

Company Number: 14554653

Analysis Date: 2025-07-20 11:03 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Barker Fire & Security Limited is a newly incorporated private limited company (established December 2022) operating in security systems services and engineering consultancy. The company has filed timely accounts without audit exemption and reports positive net assets and working capital. However, the business has a significant financial lease obligation (£25,750) and limited cash reserves (£952), which could constrain liquidity. Credit approval should be conditional on monitoring cash flow closely and confirming ongoing contract wins to support debt servicing.

2. Financial Strength:
   The balance sheet as at 31 December 2023 shows total fixed assets of £21,560 primarily motor vehicles, and current assets of £14,288, including trade debtors of £8,806 and VAT recoverable of £4,530. Current liabilities are modest at £2,020, giving a strong net current asset position of £12,268. After accounting for long-term financial lease obligations of £25,750, net assets stand at £8,078, representing shareholder equity. The company meets Small company thresholds and holds positive retained earnings (£8,078) after dividends, indicating initial profitability and shareholder support.

3. Cash Flow Assessment:
   Cash at bank is low (£952), indicating limited immediate liquidity. However, trade debtors of £8,806 and VAT recoverable provide some short-term cash inflows. The minimal trade creditors (£2,020) reduce cash outflow pressure. The company has a financial lease liability due after one year (£25,750), suggesting future cash commitments. The ability to manage working capital effectively and generate operational cash flow will be critical to meeting these obligations. The current cash position warrants cautious monitoring but is not unusual for a start-up business in its first full year.

4. Monitoring Points:

• Track monthly cash flow statements and debtor ageing to ensure timely collections and adequate liquidity.
• Monitor financial lease repayment schedule and ensure cash reserves or refinancing options are in place.
• Review profit and loss performance in upcoming filings to confirm continued profitability and dividend policy sustainability.
• Observe contract wins and pipeline developments in the security and engineering sectors to assess revenue growth potential.
• Maintain oversight of director’s conduct and ownership structure stability.