K SECURITY LTD
Executive Summary
K SECURITY LTD is a compliant but dormant private company with minimal financial activity and nominal net assets. Its financial health reflects a non-operating status, with no cash flow or profit generation. To enhance financial wellness, the company should clarify its future business plans and prepare for active trading or continue managing dormancy cost-effectively.
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This analysis is opinion only and should not be interpreted as financial advice.
K SECURITY LTD - Analysis Report
Financial Health Score: D (Dormant, Minimal Activity)
Explanation: The company is dormant with negligible financial activity, reflected in minimal assets and no reported revenues or expenses. This score indicates an inactive business status, not necessarily distressed, but lacking operational financial vitality.
Key Vital Signs
Metric | Value | Interpretation |
---|---|---|
Status | Active | Company is legally operational but dormant (no trading). |
Account Category | Dormant | No significant financial transactions during reported years. |
Cash | £1 | Minimal cash balance, typical for dormant companies. |
Net Assets | £1 | Reflects nominal share capital, no accumulated profits/losses. |
Shareholders' Funds | £1 | Equity equals nominal share capital, no retained earnings. |
Filing Compliance | Up to date | Financial and confirmation statements filed timely. |
Director Control | Single Director & PSC | Full control by one individual (Mr. Kacy Colin White). |
Industry Classification | Private Security | Registered SIC code 80100, but no trading activity reported. |
Symptoms Analysis
- Dormant Status: The company shows typical symptoms of a dormant entity — no turnover, no expenses, and minimal financial movement. This indicates the business is not currently generating revenue or incurring operational costs.
- Minimal Financial Footprint: Cash and net assets stand at £1, representing only the nominal share capital. This suggests there has been no investment, operational activity, or financial growth.
- Single Shareholder Control: With one person holding 75-100% ownership and director appointment rights, governance is straightforward but concentrated.
- Compliance Maintained: Timely filing of accounts and confirmation statements indicates good compliance with statutory obligations, akin to a patient attending routine check-ups even when asymptomatic.
- No Audit Requirement: Exemption from audit reflects the small scale and dormant nature, reducing administrative burden but also limiting financial transparency.
Diagnosis
K SECURITY LTD is effectively in a state of financial hibernation, akin to a patient in remission or rest. The company is registered and compliant but inactive operationally. There are no financial "symptoms" such as cash flow issues, debts, or losses because there is no trading activity. This status could reflect a company set up in anticipation of future business, or one temporarily paused.
From a financial health perspective, the company is neither healthy in the sense of active cash-generating business nor unhealthy due to distress. Rather, it is dormant — a neutral state with very low financial risk but also no business momentum.
Prognosis
If the company intends to commence trading, it will need to transition from dormancy to active financial management. This will involve generating revenue, managing costs, and building working capital. Without operational activity, the financial health will remain static.
If dormancy continues long-term, the company risks becoming obsolete or losing relevance in its sector. Alternatively, it can remain a low-maintenance holding vehicle with minimal ongoing costs.
Recommendations
- Clarify Business Intentions: Determine if K SECURITY LTD plans to activate trading. If yes, prepare a business plan and financial forecast.
- Financial Planning: For future trading, establish banking arrangements, budgeting, and cash flow management to avoid financial distress.
- Maintain Compliance: Continue timely filing of accounts and confirmation statements to avoid penalties.
- Consider Costs vs Benefits: If the company remains dormant indefinitely, evaluate cost-effectiveness of ongoing maintenance (filing fees, director responsibilities).
- Monitor Director & Control: As sole director and shareholder, Mr. White should ensure governance practices are followed to maintain corporate compliance and readiness for operational changes.
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