Company Number: 12609856

Analysis Date: 2025-07-20 18:25 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Moonsecurity Ltd is a very young private limited company operating in the private security and temporary employment agency sectors. The company shows signs of growth with a reported increase in employee numbers (from 0 to 4) and directors’ statements indicating good sales growth and profitability. However, the latest financials reveal a negative net asset position of £6,300 as of October 2023, compared with positive net assets of £1,181 in 2022. This deterioration is primarily due to the recognition of creditors falling due after more than one year (£6,300). The company currently has no cash or debtors on the balance sheet, which raises liquidity concerns. Given the modest scale, limited financial history, and the negative net asset position, credit facilities should be extended cautiously and with monitoring conditions in place, such as regular financial updates and limitations on borrowing until net asset recovery is demonstrated.

2. Financial Strength
   The balance sheet shows a small scale operation with minimal share capital (£1) and limited assets. The transition from a positive net asset position (£1,181) in 2022 to a negative one (-£6,300) in 2023 is concerning. The absence of current assets (no cash or debtors) in 2023, coupled with the recognition of £6,300 long-term creditors, indicates the company has taken on payables or loans that reduce equity. Shareholders’ funds mirror the net asset decline. The small asset base and negative equity reduce the company’s buffer against financial stress and limit its ability to raise further secured debt.

3. Cash Flow Assessment
   The 2023 accounts show no cash at bank or debtors, implying no liquid resources available at the year-end. In prior years, cash balances stood at £1,971, suggesting recent cash depletion. The lack of cash and working capital is a significant liquidity risk. While directors report good sales growth, absence of cash on the balance sheet at year-end signals potential cash flow management issues or timing of receipts and payments. The company’s ability to service short-term liabilities and creditors is questionable without additional cash inflows or capital injections.

4. Monitoring Points

• Quarterly management accounts to assess cash flow trends and working capital position.
• Updates on long-term creditor amounts and repayment plans.
• Confirmation of ongoing sales growth and profitability performance.
• Monitoring director and shareholder financial support if required.
• Watch for timely filing of future accounts and confirmation statements to avoid compliance risk.
• Review any changes in director appointments and shareholding structure for governance stability.