Company Number: 13123827

Analysis Date: 2025-07-20 13:50 UTC

1. Risk Rating: MEDIUM
   The company exhibits some liquidity concerns and a declining net asset position, though it remains active with current filings up to date. The small scale of operations and limited capital base introduce moderate risk in meeting obligations, but no immediate insolvency indicators are present.

2. Key Concerns:

• Negative net current assets in the most recent year: The company reports net current liabilities of £234 at 31 January 2024, a deterioration from a small positive working capital in prior years, indicating potential short-term liquidity pressure.
• Declining net assets and shareholder funds: Net assets have decreased from £467 in 2021 to £110 in 2024, reflecting erosion of retained earnings and financial buffer.
• Significant director’s loan account balance: £996 owed to the director at year-end, with no repayments made, suggesting reliance on director funding which may not be sustainable long-term.

3. Positive Indicators:

• Timely statutory filings: Accounts and confirmation statements are up to date with no overdue filings, indicating compliance with regulatory requirements.
• Active trading status: The company remains active in the private security sector, with ongoing operations since incorporation in 2021.
• Minimal fixed assets and low capital base: Small tangible assets and nominal share capital limit exposure to fixed costs, allowing operational flexibility.

4. Due Diligence Notes:

• Investigate the reasons behind the decline in working capital and net assets, including profitability trends and cost structure.
• Review cash flow statements and bank reconciliations for evidence of sustained liquidity challenges or reliance on director loans.
• Clarify the nature and terms of the director’s loan account and any plans for repayment or refinancing.
• Assess client base stability and contract durations in the private security sector for operational sustainability.
• Confirm no contingent liabilities or off-balance sheet exposures that could impair solvency.