Company Number: 12802413

Analysis Date: 2025-07-20 15:16 UTC

Financial Health Assessment for CORE GLOBAL PROTECTION LTD

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1. Financial Health Score: B

Explanation:
CORE GLOBAL PROTECTION LTD demonstrates generally sound financial "vital signs" with positive net assets and consistent working capital. The company maintains a stable equity base and shows no signs of immediate distress. However, the relatively low fixed assets and modest scale of operations, typical for a micro-entity, limit the overall robustness of its financial health. The increase in current liabilities compared to current assets in 2024, although still positive in net current assets, suggests the company should monitor liquidity closely to avoid cash flow strain.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Fixed Assets	£6,770	Low fixed asset base typical for micro company; indicates limited long-term capital investment. Healthy for a service-based security company.
Current Assets	£85,680	Strong short-term assets including cash or receivables; essential for daily operations and liquidity.
Current Liabilities	£64,192	Noticeable increase from previous year (£38,135 in 2023); may indicate increased short-term obligations or payables.
Net Current Assets (Working Capital)	£21,488	Positive working capital signals ability to cover short-term debts; "healthy pulse" for operational liquidity.
Net Assets / Shareholders Funds	£27,822	Positive equity base; company is solvent with assets exceeding liabilities.
Share Capital	£2.00	Nominal capital; typical for micro-entities, control is in retained earnings and reserves.

Additional Context:

• The company operates in the private security industry (SIC 80100), which can involve fluctuating short-term liabilities from contracts or staffing costs.
• Employee count increased slightly from 2 to 3, indicating modest growth in operations.

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3. Diagnosis

CORE GLOBAL PROTECTION LTD shows a stable financial condition without symptoms of distress such as negative net assets, excessive liabilities, or overdue filings. The healthy working capital indicates the company can meet its short-term obligations, akin to a patient with stable vital signs. The increase in current liabilities warrants attention as it could signal increasing operational costs or delayed payments that might stress liquidity if not managed properly.

The company's net assets have remained relatively stable over the past three years, suggesting no significant erosion or buildup of equity. The modest fixed asset base reflects a business model that likely relies more on human capital and services than on physical infrastructure.

Key strengths include:

• Positive net current assets providing a cushion against short-term financial shocks.
• Consistent equity position reflecting retained earnings or reserves.
• Compliance with filing deadlines and no indication of financial or legal distress.

Potential areas to monitor:

• Growth in current liabilities outpacing current assets growth could be an early "symptom" of cash flow tightening.
• Limited share capital means the company’s financial resilience depends heavily on retained profits and cash flow management.

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4. Recommendations

To maintain and improve financial wellness, CORE GLOBAL PROTECTION LTD should consider the following actions:

• Liquidity Management:
  Regularly monitor cash flow and current liabilities to prevent liquidity squeeze. Consider negotiating better payment terms with creditors or accelerating receivables to smooth cash flow.

• Cost Control:
  Analyze the drivers behind increased current liabilities. If linked to operational costs, implement tighter budget controls or explore cost efficiencies without compromising service quality.

• Capital Structure:
  Although share capital is nominal, consider if additional capital injections or external financing (if needed) could support growth or buffer financial shocks.

• Growth Strategy:
  With a stable financial base, explore opportunities for prudent expansion, such as increasing the client base or service offerings, while ensuring working capital remains healthy.

• Financial Reporting:
  Maintain timely and accurate accounts and returns filings to avoid regulatory penalties and uphold stakeholder confidence.

• Risk Assessment:
  Periodically review business and financial risks, especially those related to contract security obligations, to anticipate and mitigate any adverse impacts.

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