BEACON SECURE TECHNOLOGIES LTD

Executive Summary

Beacon Secure Technologies Ltd shows a strong financial position with excellent liquidity and positive net assets, reflecting healthy business operations and sound management. The company’s financial metrics suggest it is well-positioned to meet current obligations and support future growth. Continued prudent management of assets and liabilities will sustain its financial wellness.

BEACON SECURE TECHNOLOGIES LTD - Analysis Report

Company Number: 12789500

Analysis Date: 2025-07-19 12:55 UTC

Financial Health Assessment for BEACON SECURE TECHNOLOGIES LTD

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1. Financial Health Score: Grade A-

Explanation:
BEACON SECURE TECHNOLOGIES LTD exhibits a robust financial position characterized by strong liquidity and solid net asset backing. The company’s ability to maintain a healthy buffer of net current assets relative to current liabilities signals sound short-term financial health. The slight decline in fixed assets but growth in current assets reflects efficient asset management and a focus on liquidity. Overall, the company’s financial "vital signs" indicate it is in a good state of health with minimal symptoms of distress.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	42,357	Moderate investment in long-term assets; slightly decreased from prior year indicating possible disposals or depreciation.
Current Assets	1,324,952	Very healthy level of liquid and short-term assets, supporting operational needs and flexibility.
Current Liabilities	275,184	Manageable short-term obligations; increase from prior year but proportionate to asset growth.
Net Current Assets (Working Capital)	1,049,768	Strong positive working capital, indicating capacity to cover immediate debts and support day-to-day operations without strain.
Total Assets Less Current Liabilities	1,092,125	Solid net asset base, reflecting value after deducting short-term debts.
Shareholders’ Funds (Equity)	1,092,125	Entirely positive equity, demonstrating no accumulated losses and strong shareholder backing.
Number of Employees	2	Small, focused team consistent with micro-entity status.
Company Age	4 years	Relatively young company, yet showing stable financial footing.

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3. Diagnosis: Financial Health and Business Condition

The company displays healthy cash flow and balance sheet stability, akin to a patient with strong vital signs and no immediate symptoms of financial distress. Its liquidity ratio (current assets to current liabilities) is approximately 4.8x, which is excellent and suggests the company can easily meet short-term obligations.

The slight reduction in fixed assets may indicate asset depreciation or strategic divestment, which is not currently impacting overall financial health. The steady increase in net current assets and shareholders’ funds shows retained earnings or capital injections supporting growth or operational needs.

There are no red flags such as negative equity, excessive liabilities, or liquidity crunches. The company’s status as a micro-entity with simple filing and a small employee base aligns with its financial profile—lean, efficient, and stable.

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4. Recommendations for Continued Financial Wellness

• Maintain Strong Liquidity: Continue monitoring working capital to ensure the company can absorb any unexpected expenses or downturns.
• Manage Fixed Assets Wisely: Review asset utilization regularly to ensure investments in fixed assets are generating adequate returns or supporting business growth.
• Plan for Growth: Consider strategic reinvestment of retained earnings to expand operations or diversify revenue streams if market conditions allow.
• Risk Management: Keep an eye on current liabilities growth to avoid any sudden increase that might impair liquidity.
• Financial Controls: As the company grows, consider implementing more detailed financial controls and forecasting to anticipate future capital needs.
• Compliance and Filing: Ensure timely filings of accounts and confirmation statements to avoid penalties and maintain good standing.

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