Company Number: 15162359

Analysis Date: 2025-07-20 18:57 UTC

1. Risk Rating: MEDIUM
   The company is newly incorporated (less than one year old) with modest current assets and positive net current assets, indicating an ability to meet short-term obligations. However, the small scale of operations, limited financial history, and current liabilities mainly comprising taxation and social security create some uncertainty around ongoing liquidity and operational stability.

2. Key Concerns:

• Limited Operating History: Incorporated in September 2023, the company has less than a full year of trading history, which restricts insight into sustainable revenue generation and profitability.
• Taxation and Social Security Creditors: A significant portion (£13,830) of current liabilities is taxation and social security, which may indicate either recent tax obligations or potential cash flow pressure if these amounts are due imminently.
• Small Scale and Capital Base: Shareholders’ funds are modest at £4,598, and the company operates with only two employees, suggesting limited financial and operational buffer against unexpected costs or downturns.

3. Positive Indicators:

• Positive Net Current Assets: Current assets exceed current liabilities by £4,598, implying the company can cover short-term debts at the reporting date.
• Up-to-date Compliance: No overdue filings for accounts or confirmation statements, demonstrating regulatory compliance and good governance practices.
• Directors’ Background and Control: Directors are also significant shareholders with relevant occupations; this alignment may support prudent management and control.

4. Due Diligence Notes:

• Review Cash Flow Trends: Investigate monthly cash flow since incorporation to assess liquidity patterns and ability to meet recurring liabilities, especially tax payments.
• Understand Revenue Model and Client Base: Examine contracts and client concentration in the private security sector to verify revenue sustainability and operational risks.
• Clarify Nature of Tax and Social Security Liabilities: Confirm timing and settlement plans for these liabilities to rule out potential payment delays or disputes.
• Assess Growth Plans and Capital Requirements: Evaluate any planned capital injections or borrowing needs that may affect solvency and liquidity going forward.