GREG BEDDOWS SECURITY SYSTEMS LTD

Executive Summary

Greg Beddows Security Systems Ltd has made progress recovering from prior financial distress but remains financially fragile with minimal equity and working capital. Focused cash flow management and strengthening its capital base are essential to improve its financial resilience and support sustainable growth.

GREG BEDDOWS SECURITY SYSTEMS LTD - Analysis Report

Company Number: 13160105

Analysis Date: 2025-07-29 14:44 UTC

Financial Health Assessment for Greg Beddows Security Systems Ltd

---

1. Financial Health Score: C

The company shows signs of recovery from previous financial distress, but its financial position remains fragile. The net assets are marginally positive, indicating a weak but improving balance sheet. This score reflects a cautious outlook: the business is surviving but not yet robust.

---

2. Key Vital Signs

Vital Sign	Value (2024)	Interpretation
Current Assets	£31,316	Cash and short-term resources available
Current Liabilities	£30,289	Short-term debts due within a year
Net Current Assets	£1,027	Positive but very slim working capital
Net Assets (Shareholders’ Funds)	£127	Barely positive equity, a key indicator of solvency
Share Capital	£2	Minimal initial investment
Average Staff Number	2	Small-scale operation consistent with micro entity status

• Current Ratio (Current Assets / Current Liabilities): ~1.03 (just above 1.0 suggests just enough short-term assets to cover liabilities).
• Net Assets Trend: Improved from a deficit of £4,631 in 2023 to a positive £127 in 2024, indicating a turnaround from past losses.

---

3. Diagnosis:

The company displays symptoms of financial distress in the past, evidenced by negative net assets in 2023. However, the latest financial year shows an improvement with slightly positive net assets and positive working capital—a sign of stabilisation. The company’s "vital signs" such as working capital and net assets are currently "palpable but weak," suggesting the business is walking a financial tightrope.

The minimal shareholders’ funds (£127) reflect a very small equity cushion, meaning the company is vulnerable to any unexpected expenses or downturns. The low share capital (£2) is typical for micro-entities but underscores limited financial backing from owners.

There is also a notable decrease in current assets (down from £53,322 to £31,316), which could indicate either asset sales or reduced cash inflows. Meanwhile, current liabilities have reduced significantly, which is positive, but the company must maintain this balance carefully.

The average number of employees (2) and nature of business (security systems services) suggest a small, owner-operated business model, which typically faces cash flow pressures and market competition risks.

---

4. Recommendations:

To improve financial wellness and build a more resilient "financial pulse," the company should consider:

• Strengthening Working Capital: Improve cash flow management by accelerating receivables collection and negotiating longer payment terms with suppliers to build a healthier buffer.
• Enhance Equity Base: Consider additional capital injection or retained earnings accumulation to build stronger shareholders’ funds and improve solvency.
• Cost Control: Monitor and control operating expenses rigorously to maintain profitability and prevent future losses.
• Financial Monitoring: Implement regular financial review cycles (monthly/quarterly) to detect early symptoms of distress such as cash shortages or rising liabilities.
• Strategic Growth Planning: Explore opportunities for business growth or diversification cautiously to increase revenue without overstretching resources.
• Contingency Planning: Prepare for unforeseen financial shocks by building some cash reserves or access to credit facilities.

---

Summary:

Greg Beddows Security Systems Ltd is showing early signs of recovery from previous financial difficulties, with a positive but fragile net asset position and working capital balance. While the company is currently solvent, its minimal equity base and limited cash reserves make it vulnerable to financial shocks. Strengthening cash flow and equity, coupled with disciplined financial management, will be critical for securing a healthier long-term financial condition.