NB SECURITY SOLUTIONS LIMITED

Executive Summary

NB SECURITY SOLUTIONS LIMITED is a newly formed private security company exhibiting significant financial distress with negative working capital and equity. Immediate capital infusion and cash flow management are critical to avert insolvency and stabilize operations. With swift corrective actions, the company can improve its financial health and prospects.

NB SECURITY SOLUTIONS LIMITED - Analysis Report

Company Number: 14958507

Analysis Date: 2025-07-29 20:59 UTC

Financial Health Assessment: NB SECURITY SOLUTIONS LIMITED
Assessment Date: 2024-10-16 (based on latest accounts date)
Company Type: Private Limited Company
Industry: Private security activities (SIC 80100)
Incorporated: June 2023
Financial Year End: June 30, 2024

---

1. Financial Health Score: D (Poor)

Explanation:
The company currently shows significant financial distress characterized by net liabilities, negative working capital, and a negative equity position. Being a newly incorporated entity, the balance sheet reflects startup phase challenges, but the degree of negative net current assets and net liabilities indicates a critical need for financial restructuring or capital injection to attain a stable footing.

---

2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	399	Minimal investment in long-term assets, typical for a startup.
Current Assets (Cash)	3,497	Limited cash reserves; essential for day-to-day operations.
Current Liabilities	16,019	Short-term obligations significantly exceed current assets.
Net Current Assets	-12,522	Indicates working capital deficiency; company may struggle to meet near-term debts.
Total Assets Less Current Liabilities	-12,123	Negative indicates liabilities exceed total assets; signs of financial distress.
Net Assets (Shareholders' Funds)	-12,123	Negative equity; accumulated losses or undercapitalization present.
Share Capital	1	Nominal initial capital; very low to support business operations.
Number of Employees	1	Sole director/employee; small scale operation.

Interpretation of Vital Signs:

• Negative Working Capital ("symptom of distress"): The company’s current liabilities far exceed its current assets, suggesting potential liquidity issues. This is akin to a patient whose vital signs (cash and liquid assets) are insufficient to cover immediate obligations (debts due soon).
• Negative Equity ("diagnostic red flag"): The net liabilities indicate that the company’s debts and obligations surpass its owned assets, pointing to a capital deficiency. This can be viewed as a weak immune system—unable to fend off financial shocks.
• Minimal Fixed Assets and Capital: Reflects either a startup phase or a business model that is asset-light. However, the nominal capital base (only £1) is dangerously low to buffer against operational risks.

---

3. Diagnosis

NB SECURITY SOLUTIONS LIMITED is in the early stages of its business life cycle but is currently showing critical financial symptoms indicative of distress. The negative net current assets and shareholders’ funds suggest the company is operating with insufficient liquidity and capital. Without adequate cash flow or further capital infusion, the company risks insolvency. The sole director holds complete control, which can be both a strength (quick decision-making) and a weakness (limited resources and oversight).

The company’s financial "vital signs" resemble a patient presenting with dehydration and low blood pressure—signals of an urgent need for intervention to stabilize condition. The absence of significant fixed assets means the business does not have tangible collateral to leverage for financing, increasing vulnerability.

---

4. Recommendations

To improve the financial wellness and prognosis of NB SECURITY SOLUTIONS LIMITED, the following actions are recommended:

• Capital Injection: Inject additional equity or secure shareholder loans to strengthen the balance sheet and improve net assets. This is akin to administering fluids to replenish the patient’s depleted reserves.

• Cash Flow Management: Develop a detailed cash flow forecast and implement strict controls to manage outgoings and accelerate receivables. Establish a buffer of liquid assets to cover at least 3 months of operating expenses.

• Debt Restructuring: Negotiate terms with creditors to extend payment schedules or reduce liabilities where possible, reducing short-term pressure.

• Revenue Growth: Focus on increasing turnover via marketing and business development to generate healthy cash inflows. Early-stage companies must prioritize building a sustainable revenue base.

• Cost Control: Keep overheads minimal; as the company currently has only one employee (director), maintain lean operations until profitability is achieved.

• Regular Financial Monitoring: Implement monthly financial reviews to detect early symptoms of distress and adjust strategy promptly.

---

Prognosis

If the recommended measures are adopted promptly, there is potential for NB SECURITY SOLUTIONS LIMITED to stabilize its financial condition and transition from distress to a healthier state. However, failure to address the liquidity and capital deficiencies may lead to insolvency risks within the next 12 months.

---