Company Number: 14174134

Analysis Date: 2025-07-29 16:38 UTC

1. Risk Rating: MEDIUM
   Durham Security Group Ltd shows a positive net asset position and net current assets, indicating solvency at the balance sheet date. However, the presence of finance lease obligations and relatively modest cash balances compared to current liabilities suggests some liquidity risk. The company is relatively new (incorporated in 2022) with limited operating history, which adds to uncertainty regarding operational stability.

2. Key Concerns:

• Lease Obligations: The company has material finance lease liabilities (£9,724) due after one year, representing a significant portion of total liabilities that may restrict cash flow flexibility.
• Cash Position Decline: Cash decreased from £20,957 in 2023 to £9,042 in 2024 despite growth in debtors, which may indicate cash flow timing issues or increased working capital needs.
• Limited Operating History: Incorporated in mid-2022, the company lacks a long track record, making trend analysis and forecasting less reliable.

3. Positive Indicators:

• Positive Net Assets and Shareholders’ Funds: Net assets increased from £4,760 in 2023 to £11,134 in 2024, showing equity growth and apparent profitability.
• Current Assets Exceed Current Liabilities: Net current assets improved from £5,072 to £8,450, suggesting the company can cover short-term obligations.
• No Overdue Filings: The company is current with statutory accounts and confirmation statement submissions, indicating good regulatory compliance.

4. Due Diligence Notes:

• Review detailed cash flow statements (not provided) to assess operating cash generation and working capital management.
• Investigate terms and duration of finance leases to understand maturity profile and impact on liquidity.
• Examine revenue trends, client contracts, and profitability drivers given limited historical data.
• Confirm there are no director disqualifications or governance issues beyond the data provided.
• Verify the accuracy and completeness of debtor balances given the significant increase in 2024.