Company Number: 13556932

Analysis Date: 2025-07-29 20:04 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net asset position and worsening working capital, indicating significant solvency and liquidity concerns within a short operating history.

2. Key Concerns:

• Negative Net Assets: As of 31 August 2024, shareholders’ funds stand at -£15,210, deteriorating from -£2,336 the previous year, reflecting accumulated losses and erosion of equity.
• Liquidity Strain: Current liabilities (£86,366) significantly exceed current assets (£62,301), resulting in negative net current assets (-£24,065), which suggests potential difficulties meeting short-term obligations.
• Director Resignation and Concentrated Control: One director resigned recently (Nov 2024), leaving a single director and a highly concentrated ownership (one PSC holding 75-100%), which may pose governance and operational continuity risks.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statements are up to date, indicating regulatory compliance in filings.
• Increasing Debtors: Debtors increased substantially from £3,635 to £43,672, which may reflect growing sales or contracts, though it raises questions about collectability.
• Modest Fixed Assets: The company maintains tangible fixed assets (£8,855), which could support ongoing operations.

4. Due Diligence Notes:

• Review Debtors’ Quality: Investigate the nature, aging, and collectability of the large debtor balance to assess cash flow sustainability.
• Examine Profit & Loss Account Details: Since only abridged accounts were filed and no income statement is provided, obtaining detailed P&L data is necessary to understand operational profitability and loss drivers.
• Assess Impact of Director Resignation: Evaluate reasons for the director’s resignation and its implications for management capability and strategic direction.
• Cash Flow Analysis: Request cash flow statements and forecasts to assess liquidity management given the negative working capital.
• Ownership and Governance: Confirm the governance structure and any plans for additional directors or PSC changes to mitigate concentration risk.

Executive Summary:
DKSS SECURITY SERVICES LTD demonstrates significant financial stress, with growing losses and a negative working capital position that may impair its ability to meet liabilities as they fall due. While compliance with filing requirements is maintained, the company’s concentrated control and recent director resignation warrant attention. Further detailed financial and operational information is recommended to clarify the sustainability of the business.