Company Number: 14175393

Analysis Date: 2025-07-19 12:26 UTC

1. Credit Opinion: DECLINE
   Imperial Star Security Limited shows a weak financial position with persistent net current liabilities and negative shareholders’ funds. Although there is a modest improvement in the retained losses year-on-year, the company remains insolvent on a balance sheet basis. The very limited cash balance (£7,860) compared to current liabilities (£23,361) indicates a tight liquidity position and weak ability to meet short-term obligations. The company is also very young (incorporated mid-2022) and has only two employees, which suggests limited operational scale and business resilience. Without evidence of significant revenue growth or capital injection, extending credit would be high risk.

2. Financial Strength:
   The balance sheet reveals net current liabilities of £15,501 and negative total equity of £15,511 as at June 2024, though this is an improvement from the prior year’s greater deficit. Current liabilities are largely composed of a director's loan account (£12,161) and other creditors (£10,000), highlighting reliance on related party funding and external creditors. Fixed assets are not reported, implying minimal tangible asset backing. Overall, the company’s financial foundation is fragile, and it is operating under a deficit capital structure.

3. Cash Flow Assessment:
   Cash at bank stands at only £7,860, insufficient to cover even a third of current liabilities. The negative net current assets position signals working capital deficiency, which raises concerns about ongoing liquidity and operational cash flow sufficiency. The absence of an income statement limits insight into profitability and cash generation, but the reported profit of £5,462 for the year (reflected in reduced accumulated losses) suggests some positive operating performance. Still, the company must improve cash inflows or secure additional funding to sustain operations.

4. Monitoring Points:

• Track improvements in net current assets and shareholders’ funds to assess financial stabilization.
• Monitor cash flow statements and profitability trends once available to confirm operational viability.
• Review director’s loan account changes to understand related party funding reliance.
• Watch for timely filing of future accounts and confirmation statements to ensure compliance and transparency.
• Follow any capital restructuring or equity injections that could strengthen the balance sheet.