EAGLE-EYE FIRE AND SECURITY LTD

Executive Summary

EAGLE-EYE FIRE AND SECURITY LTD has demonstrated encouraging growth in assets and equity since incorporation, improving its financial position in a challenging startup phase. The company’s micro-entity scale and significant long-term liabilities require cautious credit exposure with conditions tied to ongoing cash flow and debt management monitoring. Directors appear capable, but the business should be reviewed regularly for emerging risks.

EAGLE-EYE FIRE AND SECURITY LTD - Analysis Report

Company Number: 13910726

Analysis Date: 2025-07-29 20:31 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   EAGLE-EYE FIRE AND SECURITY LTD is a very young micro-entity incorporated in 2022, with only two employees and limited financial history. The latest filed accounts show an increase in net assets and improved working capital, indicating positive momentum. However, the company holds significant long-term liabilities relative to its asset base (£33.5k creditors due after one year against total assets of £58.7k in 2024) which suggests some leverage risk. The directors have relevant operational and financial backgrounds and are actively involved. Given the early stage of the company and moderate leverage, credit approval should be conditional on continued monitoring of cash flow and debt servicing capability.

2. Financial Strength:
   The balance sheet shows growth and strengthening over the first two years:

• Fixed assets rose from £16.8k to £35.1k, showing some investment in long-term resources.
• Current assets increased from £7.5k to £23.7k, improving liquidity.
• Net current assets improved from negative £4.4k to positive £14.1k, reflecting better short-term financial health.
• Shareholders’ funds turned positive and increased from negative £1.4k to £15.7k, indicating enhanced equity.
  However, the company carries significant non-current liabilities (£33.5k) which need to be serviced from future cash flows. The small scale and micro-entity status limit the financial cushion available.

3. Cash Flow Assessment:
   Current assets exceed current liabilities by a healthy margin, indicating the company can meet short-term obligations. The increase in net current assets is a positive sign for working capital management. Nonetheless, the sizeable long-term creditors imply fixed repayment commitments that must be carefully managed. The accounts do not provide detailed cash flow statements, so ongoing liquidity must be verified through operational cash generation and debtor collection efficiency. The small employee base (2 staff) suggests relatively low overheads, which may support cash flow stability.

4. Monitoring Points:

• Debt servicing: monitor timely repayment of long-term creditors to avoid liquidity strain.
• Cash flow: track operational cash generation versus working capital needs and capital expenditure.
• Profitability trends: assess future profitability and retained earnings to strengthen equity base.
• Directors’ involvement: maintain oversight of management’s financial stewardship and strategic decisions.
• Filing compliance: ensure timely submission of accounts and confirmation statements to avoid regulatory risks.