Company Number: 13604170

Analysis Date: 2025-07-29 17:15 UTC

1. Risk Rating: MEDIUM
   Eagle Security Ltd demonstrates positive net current assets and net assets, indicating solvency at the balance sheet date. However, the notable increase in current liabilities in 2024, coupled with a significant reduction in net assets and employee count, raises concerns about short-term liquidity and operational stability. The lack of a full profit and loss statement limits comprehensive financial analysis.

2. Key Concerns:

• Rising Current Liabilities: Current liabilities more than doubled from £73.6k in 2023 to £168.7k in 2024, potentially signaling cash flow strain or increased short-term obligations.
• Declining Net Assets: Net assets decreased from £17.1k in 2023 to £9.7k in 2024, which could reflect losses or asset write-downs, undermining financial resilience.
• Reduced Workforce: The average number of employees dropped from 40 in 2023 to 15 in 2024, which may indicate operational downsizing or distress affecting business sustainability.

3. Positive Indicators:

• Positive Working Capital: Despite increased liabilities, net current assets remain positive at £9.3k, suggesting the company can cover immediate debts.
• No Filing or Compliance Issues: The company’s accounts and confirmation statement filings are up to date with no overdue returns, indicating good regulatory compliance.
• Clear Ownership and Management: Three significant controllers each hold 25-50% of shares and voting rights, providing stable and transparent governance.

4. Due Diligence Notes:

• Obtain detailed profit and loss statements to assess profitability trends and causes of declining net assets.
• Investigate the nature and maturity profile of the increased current liabilities to evaluate liquidity risks.
• Understand reasons behind the workforce reduction and its impact on operational capacity and future revenue generation.
• Review any contingent liabilities or off-balance-sheet commitments not reflected in the filleted accounts.