PRIME SECURITY AND RESOURCE MANAGEMENT LTD

Executive Summary

PRIME SECURITY AND RESOURCE MANAGEMENT LTD exhibits high liquidity risk due to a negative net current asset position and limited current assets against liabilities. While compliance with filing requirements is up to date and the company has a positive net asset base, the reliance on fixed assets and key individual control warrants further scrutiny. Careful due diligence on operational cash flows and governance stability is recommended before investment consideration.

PRIME SECURITY AND RESOURCE MANAGEMENT LTD - Analysis Report

Company Number: 13679168

Analysis Date: 2025-07-29 18:18 UTC

1. Risk Rating: HIGH
   The company shows significant liquidity concerns with current liabilities exceeding current assets and a negative net current asset position. The micro-entity scale and limited financial disclosures restrict comprehensive evaluation, but the imbalance between short-term liabilities and assets suggests potential solvency risk.

2. Key Concerns:

• Negative net current assets (£76 current assets vs. £3,412 current liabilities) indicate potential cash flow difficulties to meet short-term obligations.
• Very limited current assets and low working capital raise concerns about operational liquidity and ability to fund day-to-day activities.
• Recent change in directors and concentration of control (single individual owning 75-100% shares and voting rights) could pose governance risks and dependence on a single key individual.

3. Positive Indicators:

• The company is current with all statutory filings, including accounts and confirmation statements, indicating compliance with regulatory requirements.
• The net assets figure is positive (£18,764), largely driven by fixed assets, suggesting some underlying asset base.
• The company has a small number of employees (4), consistent with its micro-entity classification, which may imply lean operations and controlled overheads.

4. Due Diligence Notes:

• Investigate the nature and valuation of fixed assets (£22,000) to confirm their liquidity and relevance to ongoing operations.
• Review recent trading performance and cash flow statements (if available) to assess operational cash generation and short-term liquidity management.
• Understand the reason for director changes in early 2023 and the implications for management stability and strategic direction.
• Confirm the relationship and roles of the persons with significant control, particularly given the overlap in share ownership and voting rights.
• Obtain further details on contracts or commitments that may impact future liabilities or require capital expenditures.