CD SECURITY SYSTEMS & FIRE LTD

Executive Summary

CD SECURITY SYSTEMS & FIRE LTD is in the early stages of its business life with very limited cash and equity, reflecting a fragile financial condition. While there is no immediate crisis, the company must improve liquidity and revenue generation to avoid financial distress. Proactive financial management and capital support are essential for a healthier financial future.

CD SECURITY SYSTEMS & FIRE LTD - Analysis Report

Company Number: 14192618

Analysis Date: 2025-07-19 12:57 UTC

Financial Health Assessment for CD SECURITY SYSTEMS & FIRE LTD (as of 30 June 2024)

---

1. Financial Health Score: D

Explanation:
The company’s financial health is currently fragile. With minimal net assets (£1) and zero cash reserves, the business exhibits vulnerability akin to a patient with poor vital signs but no acute crisis. While not immediately critical, the lack of working capital and very low equity buffer indicate a need for caution and remedial action to avoid distress.

---

2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	0	No liquid assets or receivables available; unhealthy cash flow situation.
Cash	0	No cash reserves to cover immediate expenses — symptom of liquidity stress.
Current Liabilities	-1	Minimal short-term liabilities, but negative sign suggests a small creditor balance or accounting presentation quirk.
Net Current Assets	1	Barely positive working capital; very tight liquidity.
Net Assets (Shareholder Equity)	1	Near-zero equity indicates very limited financial cushion.
Share Capital	100	Initial investment is present but largely absorbed by accumulated losses.
Profit and Loss Account	-99	Significant accumulated losses relative to share capital — symptom of operating challenges or initial start-up phase losses.
Employees	1	Very small scale operation; limited human resources.
Turnover (not provided)	N/A	Unable to assess revenue trends; likely low or just starting operations.

---

3. Diagnosis

Overall Financial Condition:
CD SECURITY SYSTEMS & FIRE LTD is in an early stage of development (incorporated mid-2022) and currently operates on a micro scale with just one employee. The financial “vital signs” reveal minimal cash and working capital, coupled with significant accumulated losses relative to the initial capital injection. This paints a picture of a company still in its infancy, possibly in a start-up or investment phase, struggling to generate positive operating cash flow or profits.

The net assets of only £1 and zero cash suggest the business is running close to its financial limits, akin to a patient with dangerously low blood pressure and no reserves. The lack of current assets means the company may struggle to meet any unexpected expenses or short-term obligations without additional funding or revenue improvements.

The balance sheet shows no fixed assets and very limited liabilities, indicating a lean structure but also possibly limited operational capacity or investment in growth assets.

The positive takeaway is that there are no signs of immediate insolvency or overdue filings, and no evidence of financial distress or legal issues. However, the company’s financial health is precarious, and without intervention, the prognosis is uncertain.

---

4. Recommendations

To improve financial wellness, CD SECURITY SYSTEMS & FIRE LTD should consider the following:

1. Boost Liquidity (Healthy Cash Flow):

   • Seek additional capital injections or short-term financing to build cash reserves.
   • Improve cash collections and reduce any receivables periods to increase working capital.

2. Increase Revenue Generation:

   • Accelerate sales efforts or service contracts to generate consistent turnover.
   • Diversify income streams within security systems services to reduce revenue volatility.

3. Cost Control and Efficiency:

   • Maintain lean operations but review all expenses carefully to avoid unnecessary cash burn.
   • Optimize vendor terms and negotiate payment schedules to ease cash flow pressures.

4. Financial Monitoring:

   • Regularly track monthly cash flow forecasts and key financial ratios.
   • Establish early warning signals for liquidity issues to act proactively.

5. Strategic Planning:

   • Develop a business plan focused on sustainable growth and achieving profitability.
   • Consider engaging financial advisory support to restructure or plan financing rounds.

---

Medical Analogy Summary

CD SECURITY SYSTEMS & FIRE LTD is currently like a patient with weak but stable vital signs—low cash (no blood flow), minimal assets (muscle mass), and accumulated losses (past trauma), but not yet in acute distress. Without intervention to improve liquidity and generate consistent revenue, the risk of financial collapse increases. Timely action is critical to restore financial vitality and ensure survival and growth.

---