MSC SECURITY SOLUTIONS LIMITED

Executive Summary

MSC Security Solutions Limited currently faces moderate financial risk characterized by negative net assets and working capital deficiencies in its latest accounts, indicating potential liquidity and solvency challenges. However, the company maintains good regulatory compliance and stable management, which supports operational continuity. Further due diligence is recommended to clarify the underlying causes of financial deterioration and assess future sustainability.

MSC SECURITY SOLUTIONS LIMITED - Analysis Report

Company Number: 13038743

Analysis Date: 2025-07-19 13:03 UTC

1. Risk Rating: MEDIUM

Justification: MSC Security Solutions Limited shows signs of recent financial stress with net current liabilities and negative net assets in the latest financial year (2023). While the company remains active and compliant with filings, the erosion of shareholder funds and working capital deficiency raise concerns about its short-term solvency and liquidity. However, the company is still operational and has no overdue filings or formal insolvency proceedings, which mitigates risk to some extent.

2. Key Concerns:

• Negative Net Current Assets and Net Assets in 2023: The company moved from a positive working capital position (£902) and net assets in 2022 to a deficit (£-332), indicating potential difficulties in meeting short-term obligations.
• Decline in Debtors and Cash Stability: Debtors decreased substantially from £14,095 in 2022 to £5,269 in 2023, while cash balances remained relatively flat. This could suggest reduced sales or collection issues affecting liquidity.
• Accumulated Losses and Negative Shareholders’ Funds: The profit and loss account shows a cumulative deficit (£-432) as of 2023, eroding the initial share capital and equity cushion, which raises concerns about ongoing operational profitability and financial sustainability.

3. Positive Indicators:

• Compliance and Timely Filing: The company is up to date with both accounts and confirmation statements, showing good governance and regulatory compliance.
• Stable Director Base: The same three directors have been in place since incorporation, indicating stable management.
• Small Company Reporting Exemption: Utilization of small company exemptions suggests a simplified operational scale, which may reduce overheads and complexity.

4. Due Diligence Notes:

• Investigate the causes of the decline in net assets and working capital, including any one-off expenses or changes in business operations in the 2023 financial year.
• Review cash flow statements and management accounts (if available) to assess ongoing liquidity and the ability to meet short-term liabilities.
• Assess the client base and accounts receivable ageing to understand the reduction in debtors and potential credit risks.
• Confirm if there are any contingent liabilities or off-balance sheet obligations not reflected in the accounts.
• Evaluate profitability trends and business model sustainability given the negative retained earnings and operating environment classified under SIC code 43999 (other specialised construction activities).