CYCLOPS SECURITY LIMITED

Executive Summary

Cyclops Security Limited demonstrates robust financial health with improving net current assets and shareholders’ funds, reflecting liquidity and growing equity. The company shows no distress symptoms but should focus on leveraging assets efficiently and mitigating key-person risk to sustain growth and operational resilience.

CYCLOPS SECURITY LIMITED - Analysis Report

Company Number: 12477408

Analysis Date: 2025-07-20 19:15 UTC

Financial Health Assessment: CYCLOPS SECURITY LIMITED (to 29 February 2024)

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1. Financial Health Score: B

CYCLOPS SECURITY LIMITED shows a solid and improving financial position typical of a micro-entity in its growth phase. The company demonstrates healthy working capital, increasing net assets, and strong shareholder equity relative to liabilities. While not without room for improvement, particularly in asset utilisation and diversification, the overall financial "vital signs" suggest a stable and growing business.

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2. Key Vital Signs (Critical Metrics & Interpretation)

• Net Current Assets (Working Capital): £44,466 (2024) up from £39,105 (2023)
  Interpretation: The company has a strong buffer of liquid assets over short-term liabilities, indicating good short-term financial health and ability to meet obligations without distress.

• Shareholders’ Funds (Equity): £53,905 (2024) vs £42,040 (2023)
  Interpretation: Rising equity reflects accumulated retained earnings and capital injection, showing strengthening financial foundation and solvency.

• Fixed Assets: £9,439 (2024), increased from £2,935 (2023)
  Interpretation: Investment in long-term assets grew, potentially indicating capital expenditure to support business operations or growth.

• Current Liabilities: £34,719 (2024), increased from £21,050 (2023)
  Interpretation: While liabilities have increased, the company’s current assets have increased disproportionately, maintaining a healthy liquidity position.

• Company Size & Category: Micro-entity, Private Limited Company
  Interpretation: Small scale with simplified reporting, limiting financial complexity but also reflecting modest operational scale.

• Employees: Average of 2 during the year
  Interpretation: Very lean operation, which may limit scalability but controls overheads.

• Ownership & Control: Single person (Mr Demetrious Anastasiou) holds 75-100% shares and voting rights
  Interpretation: Clear control structure, which may simplify decision-making but also concentrates financial risk and governance.

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3. Diagnosis: What the Financial Data Reveals About Business Health

The company exhibits "healthy cash flow" characteristics, with growing net current assets signaling good liquidity and ability to cover short-term debts comfortably. The increase in fixed assets suggests reinvestment into the business, a positive sign of growth intent. Shareholders’ funds growth indicates profitability or capital injections, enhancing the net worth and buffer against potential losses.

There are no signs of financial distress such as negative working capital or erosion of equity. The company’s liabilities remain manageable relative to assets, and the balance sheet shows a robust net asset position. However, as a micro-entity with just two employees and a single controlling shareholder, the business is vulnerable to operational risks tied to key individuals and limited resource diversification.

The absence of audit requirements under micro-entity exemptions limits external scrutiny but is common at this scale.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Improve Asset Efficiency: Continue monitoring fixed asset utilisation to ensure capital investments translate into revenue growth rather than idle resources.

• Strengthen Cash Flow Management: Maintain and enhance cash flow forecasting to anticipate any seasonal or unexpected liquidity needs.

• Diversify Revenue Streams: Explore broadening client base or service offerings within private security to mitigate reliance on limited contracts.

• Governance Enhancements: Consider appointing an additional director or advisory board member to reduce key-person risk and improve strategic oversight.

• Plan for Growth: Given increasing equity and working capital, develop a medium-term growth strategy to scale operations sustainably, possibly hiring additional staff or investing in technology.

• Maintain Compliance: Continue timely filing of accounts and returns to avoid penalties and maintain corporate credibility.

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Medical Analogy Summary

CYCLOPS SECURITY LIMITED’s financial "vital signs" indicate a company with a healthy pulse—strong liquidity, growing strength in equity, and no symptoms of financial distress. Like a patient with steady blood pressure and improving lab results, the company is on a positive trajectory but should keep monitoring its "diet and exercise" (asset management and cash flow) to maintain long-term wellness.

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