CAPITAL FIRE & SECURITY SYSTEMS LTD
Company number NI633961 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Credit Assessment: CAPITAL FIRE & SECURITY SYSTEMS LTD
1. Credit Opinion: DECLINE
The company presents an unacceptable credit risk in its current form. The business is technically insolvent with negative net assets of £10,130 as at 31 October 2024, representing a severe deterioration from positive equity of £1,420 in the prior year. The working capital position is critically deficient, with current liabilities exceeding current assets by £64,181, leaving the company unable to meet short-term obligations from its asset base. Without evidence of director loans or parent company support sustaining operations, this entity cannot be considered creditworthy for commercial lending.
2. Financial Strength
Balance sheet integrity is fundamentally compromised.
| Metric | 2024 | 2023 | 2022 | 2020 |
|---|---|---|---|---|
| Net Assets | (£10,130) | £1,420 | £12,590 | £84,399 |
| Shareholders' Funds | (£10,130) | £1,420 | £12,590 | £84,399 |
| Cash | £5,530 | £8,190 | - | - |
The trajectory is unambiguous: cumulative losses have eroded the entire equity base over four consecutive reporting periods. Net assets have fallen from £84,399 in 2020 to negative territory, representing a £94,529 destruction in shareholder value.
Critical concern — Goodwill overhang: The balance sheet carries £77,458 in goodwill (arising from a past acquisition), representing 66.5% of total assets. This intangible asset has limited realisable value in a distressed scenario. If subjected to impairment testing (which the accounts indicate is performed), any write-down would deepen the insolvency significantly. Stripping out goodwill, tangible net assets stand at approximately (£87,588).
Capital structure: Share capital is nominal at £4, with accumulated losses of £10,134 held in the profit and loss reserve. There is no buffer whatsoever. The company is trading while insolvent, which raises questions about the directors' obligations under insolvency legislation.
3. Cash Flow Assessment
Liquidity position is critical.
| Metric | 2024 | 2023 |
|---|---|---|
| Current Assets | £32,757 | £37,204 |
| Current Liabilities | £96,938 | £93,223 |
| Net Current Liabilities | (£64,181) | (£56,019) |
| Current Ratio | 0.34 | 0.40 |
| Quick Ratio (ex-stock) | 0.33 | 0.39 |
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Current ratio of 0.34 falls well below the 1.0 threshold typically required for healthy working capital. For every £1 of short-term obligations, the company holds only 34p in current assets.
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Cash has declined 32.5% year-on-year, from £8,190 to £5,530, suggesting cash burn is accelerating.
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Debtors increased from £18,014 to £26,727 (48.4% increase), which could indicate either revenue growth (positive) or collection difficulties (negative). Without a profit and loss account, this cannot be verified.
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Stock levels collapsed from £11,000 to £500, which may indicate a deliberate run-down of inventory or an inability to replenish.
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Long-term creditors of £29,745 (down from £34,970) suggest some debt restructuring or repayment, but the overall liability position remains oppressive.
The company appears to be surviving on creditor forbearance and minimal cash reserves. Any disruption to trade creditor terms or debtor collections would likely trigger a liquidity crisis.
4. Monitoring Points
If the applicant returns seeking credit under revised circumstances, the following require ongoing scrutiny:
| Metric | Threshold | Current | Status |
|---|---|---|---|
| Net Assets | Positive | (£10,130) | ❌ Breach |
| Current Ratio | ≥1.0 | 0.34 | ❌ Breach |
| Cash Position | Stable/growing | Declining | ❌ Breach |
| P&L Reserve | Positive | (£10,134) | ❌ Breach |
Key watchpoints:
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Director loan accounts — The accounts do not disclose whether directors have advanced loans to support operations. If present, these may rank ahead of trade creditors and further erode recoverable value.
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Goodwill impairment — Any trigger event (loss of key contracts, regulatory change, economic downturn) could necessitate a write-down, deepening insolvency.
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Creditor payment behaviour — Monitor whether trade creditors are ageing or being stretched. Current liabilities have increased year-on-year despite flat employee numbers.
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Filing compliance — Accounts for year ending 31 October 2024 were approved on 2 October 2025, a significant delay. While not yet overdue per Companies House deadlines, this lag may signal operational difficulties.
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Connected party transactions — Three directors with shared surnames (McNamee/McNamara) suggest a family-controlled business. Related party exposures should be investigated for inter-company balances or guarantees.
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Revenue trajectory — The absence of a profit and loss account means profitability cannot be assessed. Request management accounts to determine whether trading losses are continuing or whether the equity erosion stems from balance sheet adjustments.