FOX SECURITY & TRAINING LTD

Executive Summary

FOX SECURITY & TRAINING LTD exhibits robust early-stage financial health with strong liquidity and growing net assets typical for a micro private security firm. The company shows no signs of distress and maintains good compliance records, suggesting a stable foundation for growth. Focused strategic investments and governance continuity will be key to sustaining financial wellness as the business expands.

FOX SECURITY & TRAINING LTD - Analysis Report

Company Number: 14738033

Analysis Date: 2025-07-29 14:12 UTC

Financial Health Assessment of FOX SECURITY & TRAINING LTD

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1. Financial Health Score: B

Explanation:
FOX SECURITY & TRAINING LTD demonstrates a solid and improving liquidity position with positive net current assets and net assets over the first two full financial years since incorporation. The company maintains a healthy cash buffer relative to its liabilities, indicating stability typical for a micro entity in the private security sector. However, the absence of fixed assets and a relatively small asset base coupled with limited financial history (only two years of data) tempers the rating to a B rather than an A. This suggests good early-stage health but with a need to monitor growth and capital structure.

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2. Key Vital Signs: Critical Metrics and Interpretation

Metric	2024 (£)	2025 (£)	Interpretation
Current Assets	8,028	10,855	Growing current assets indicate improved liquidity; a healthy cash and receivables position.
Current Liabilities	217	222	Very low current liabilities suggest minimal short-term debts, reducing liquidity stress risk.
Net Current Assets	7,811	10,633	Positive and rising net current assets ("working capital") indicates strong short-term financial health.
Total Assets Less Current Liabilities	7,811	10,633	Reflects total net assets; positive and increasing, which is a sign of building equity.
Net Assets (Shareholders' Funds)	7,811	10,633	Shareholders’ equity is positive and growing, showing retained earnings or capital injections.
Fixed Assets	0	0	No investment in long-term assets; typical for a service-based micro company but limits asset base diversity.
Average Number of Employees	2	2	Small workforce consistent with a micro company; manageable overhead levels.

Interpretation Summary:
The company exhibits "healthy cash flow" symptoms, with minimal short-term debts and growing net assets. The balance sheet shows no signs of distress or over-leverage. The consistent shareholder equity growth signals prudent financial management or capital input.

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3. Diagnosis: What the Financial Data Reveals About Business Health

FOX SECURITY & TRAINING LTD is in a stable and growing financial condition typical of a well-managed micro private security company in its early operational years. The "vital signs" indicate liquidity strength and equity growth without over-reliance on debt. The lack of fixed assets suggests the business model is service-oriented with low capital expenditure needs, which is typical for this sector but may limit asset-backed borrowing capacity.

The company's governance appears stable with a single current director after initial turnover. The presence of multiple persons with significant control sharing equity and voting rights indicates balanced ownership and decision-making, reducing risk of unilateral control issues.

No overdue filings or administrative penalties are present, reflecting good compliance "health," reducing regulatory risks.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Maintain and Build Cash Reserves: Continue to bolster current assets to ensure liquidity cushions against unforeseen expenses or downturns.
• Consider Strategic Investment in Fixed Assets: Evaluate opportunities for acquiring specialized security equipment or technology to enhance service offerings and build tangible assets, which can support future growth or lending.
• Monitor Working Capital Efficiency: Although current ratios are strong, review debtor collection and creditor payment terms regularly to optimise cash flow.
• Plan for Sustainable Growth: As the company matures, consider scaling workforce and operational capacity carefully to maintain profitability without overextending resources.
• Governance and Succession Planning: With director turnover, ensure continuity in leadership and clear roles/responsibilities among shareholders to support stability.
• Prepare for Audit Thresholds: As the company grows, anticipate the transition from micro-entity exemption to more comprehensive accounting and auditing requirements; early preparation will ease compliance burden.

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