FALCON SECURITY AND TRAINING SOLUTIONS LIMITED

Executive Summary

Falcon Security And Training Solutions Limited is currently in a fragile financial state, with negative working capital and shareholders' equity indicating liquidity and capital challenges. Despite maintaining compliance, the company's operations appear minimal with no employees and very low assets, signaling a need for urgent financial and operational intervention to restore stability. Immediate capital injection and strategic review are recommended to improve its financial health and sustainability.

FALCON SECURITY AND TRAINING SOLUTIONS LIMITED - Analysis Report

Company Number: 12664448

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

Financial Health Assessment for Falcon Security And Training Solutions Limited

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1. Financial Health Score: D

Explanation:
The company is exhibiting clear symptoms of financial distress, notably persistent negative net current assets and shareholders’ funds, indicating ongoing working capital deficits and erosion of equity. While the company is still active, its financial "vital signs" reflect liquidity challenges and a weak capital base, requiring urgent management attention.

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2. Key Vital Signs

Metric	Latest Value (2024)	Interpretation
Current Assets	£46	Extremely low, indicating minimal liquid resources available
Current Liabilities	£368	Short-term obligations outweigh assets by £322
Net Current Assets	-£322	Negative working capital ("cash flow weakness")
Shareholders’ Funds	-£322	Negative equity ("capital erosion")
Average Employees	0	No staff employed, suggesting limited operational activity
Account Category	Micro	Simplified reporting but limited scale and resources
Overdue Filings	No	Compliance up to date, positive administrative sign

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3. Diagnosis

The company is showing symptoms of financial distress, primarily characterized by:

• Negative Working Capital: The company’s current liabilities exceed current assets significantly, creating a liquidity shortfall. This "healthy cash flow" sign is absent, implying difficulty in meeting short-term debts on time.

• Eroded Equity: Persistent negative shareholders’ funds suggest accumulated losses or insufficient capital injections. This "capital anemia" weakens the company’s financial resilience.

• Minimal Operational Scale: With zero employees reported and negligible current assets, the business appears either dormant in operations or struggling to sustain activities.

• No External Financing Noted: Share capital is just £1, indicating no significant equity investment to buffer losses or fund growth.

While the company has maintained regulatory compliance (no overdue filings), these financial "symptoms" point towards an unstable condition that could lead to insolvency without remedial action.

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4. Recommendations

To improve financial wellness and avert worsening distress, the company should consider:

• Inject Additional Capital: Raise equity or secure loans to restore positive working capital and rebuild shareholders’ funds, strengthening the financial "immune system."

• Enhance Liquidity Management: Improve cash inflows and control outflows to maintain a "healthy cash flow," ensuring short-term obligations can be met reliably.

• Review Business Model and Operations: Evaluate operational viability given no employees and minimal assets; consider restructuring, cost reductions, or pivoting to more sustainable activities.

• Seek Professional Advice: Engage financial advisors or turnaround specialists to explore restructuring options and develop a recovery plan, akin to a patient consulting a specialist when symptoms persist.

• Monitor Financial Metrics Regularly: Establish key performance indicators to track improvements in liquidity, solvency, and profitability, enabling early detection of future "symptoms."

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