LEGACY SECURITY SERVICES LIMITED

Executive Summary

LEGACY SECURITY SERVICES LIMITED is a newly established micro-entity in the private security sector with a minimal but stable financial position typical for a first-year startup. The company has positive net assets and no financial distress signs but operates on a very small scale with no employees and limited working capital. To strengthen its financial health, it should focus on developing revenue, building liquidity, and preparing for operational growth.

LEGACY SECURITY SERVICES LIMITED - Analysis Report

Company Number: 15738800

Analysis Date: 2025-07-19 12:21 UTC

Financial Health Assessment for LEGACY SECURITY SERVICES LIMITED

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1. Financial Health Score: C

Explanation:
The company is in its infancy (incorporated May 2024) and has filed micro-entity accounts for its first financial year ending May 2025. The financial figures are minimal but positive, indicating the company is operational with a very modest asset base and virtually no liabilities. The score "C" reflects a stable but nascent financial state with limited data to show growth or profitability. The company is not showing distress but remains in an early development phase with limited operational scale.

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2. Key Vital Signs

Metric	Figure (£)	Interpretation
Fixed Assets	1,084	Small investment in long-term assets, likely basic equipment.
Current Assets	255	Very low liquid or short-term assets, minimal working capital.
Current Liabilities	254	Nearly equal to current assets, indicating tight liquidity.
Net Current Assets	1	Marginal positive working capital; healthy but fragile.
Total Assets Less Current Liabilities	1,085	Positive net asset position but very small scale.
Net Assets / Shareholders’ Funds	1,085	Equity backing is positive, showing no indebtedness.
Average Employees	0	No employees during the period, indicating possibly a sole trader or founder-run business.

Interpretation:

• The company’s "vital signs" reveal a very small balance sheet typical for a micro-entity startup.
• The near equality of current assets and current liabilities suggests the company is maintaining just enough liquidity for operations, a "healthy cash flow" equivalent for such a small scale business.
• No liabilities beyond short-term creditors reduces financial risk but also implies limited operational activity or investment.
• No employees indicate a very lean operation, possibly founder-led without external human resources so far.

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3. Diagnosis

Overall Financial Condition:
LEGACY SECURITY SERVICES LIMITED appears to be a newly formed micro-business operating in the private security sector. The minimal asset base and neutral working capital position indicate a start-up phase with limited trading activities during the first year. The balance sheet shows no financial distress — there are no negative net assets or excessive liabilities — but also no clear signs of growth, revenues, or profitability yet.

Symptoms:

• No employees and minimal assets suggest the company might be in pre-revenue or early establishment mode.
• Positive net assets and current assets slightly exceeding liabilities show a "stable pulse" financially but on a very small scale.
• The director is also the sole significant controller, indicating tight management control but potential dependency on the individual.

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4. Recommendations

To improve financial wellness and strengthen the company’s future health, consider the following actions:

• Develop Revenue Streams: Focus on acquiring contracts or clients to generate sustainable income and improve cash flow beyond the current minimal asset base.
• Build Working Capital Buffer: Increasing current assets relative to liabilities will provide a cushion for operational expenses and unexpected costs.
• Consider Staffing Needs: If growth occurs, plan for recruitment to support operational demands and reduce over-reliance on the director.
• Maintain Compliance and Reporting: Keep filing deadlines up to date to avoid penalties and maintain a good standing with Companies House.
• Explore Financing Options: If expansion is planned, evaluate options for funding (e.g., loans, investor capital) while maintaining prudent financial control.
• Establish Financial Controls: Implement basic accounting and financial management practices to monitor profitability and liquidity as operations scale.

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