PROTEK SECURE FIRE LIMITED

Executive Summary

Protek Secure Fire Limited is a financially healthy micro-entity with positive working capital and net assets, reflecting good initial liquidity and stability. While still in early development, the company shows no immediate distress signs but should focus on building capital resilience and cash flow monitoring to support future growth. Timely compliance and strong governance will be critical to maintaining this positive trajectory.

PROTEK SECURE FIRE LIMITED - Analysis Report

Company Number: 15128224

Analysis Date: 2025-07-20 12:31 UTC

Financial Health Assessment Report for PROTEK SECURE FIRE LIMITED

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1. Financial Health Score: B

Explanation:
Protek Secure Fire Limited, a micro-entity in the construction installation sector, shows a solid foundation for a company in its first full accounting period. The company exhibits positive net current assets and net assets, indicating a healthy liquidity position and an initial capital cushion. However, being a newly incorporated entity with limited financial history and modest shareholder capital, the company is in a formative stage with potential risks related to growth and sustainability. The absence of debt beyond current liabilities is a positive sign, but ongoing monitoring is essential as the business scales. Hence, a grade of B reflects a generally healthy financial status but with room for cautious optimism and improvement.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Share Capital	4.00	Minimal initial shareholder investment; typical for a micro private company.
Current Assets	125,363	Healthy cash, receivables, or short-term assets indicating good liquidity potential.
Current Liabilities	80,779	Short-term debts or payables; manageable given current assets.
Net Current Assets (Working Capital)	44,584	Positive working capital signals the company can cover short-term obligations comfortably.
Net Assets	44,584	Positive net assets show the company has more assets than liabilities, a fundamental sign of financial health.
Number of Employees	9	Indicates a small operational scale appropriate for a micro-enterprise.
Account Category	Micro	Simplified reporting but limited financial detail; reflects small scale operations.
Filing Status	Up to date	No overdue filings; good compliance health reduces regulatory risk.
Directors & Significant Control	Multiple directors with shared control	Balanced governance structure; multiple PSCs owning 25-50% shares each reduces concentration risk.

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3. Diagnosis: What the Financial Data Reveals About Business Health

Protek Secure Fire Limited presents the classic signs of a "healthy newborn" company. The positive net current assets show a "healthy cash flow" environment, meaning the company can meet its immediate liabilities without distress. The equity base, while modest, is positive and reflects retained earnings or initial capital beyond the nominal share capital, which may include initial investments or early profits.

The company's current liabilities are well covered by current assets, implying no immediate liquidity crunch or solvency issues—no "symptoms of distress" such as negative working capital or net liabilities. The small size and micro-entity status limit visibility into profitability and cash flow trends, but the lack of overdrafts or long-term debt suggests a conservative and low-risk financial structure.

Governance appears stable with four directors and three significant shareholders sharing control, reducing governance risk but requiring attention to ensure aligned strategic decisions.

Being a new business in the construction installation sector, the company is navigating early growth stages, which typically come with operational uncertainties and cash flow fluctuations. The average headcount of nine employees suggests active operations and investment in human capital to support service delivery.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Build Capital Reserves: Consider gradually increasing share capital or retained earnings to strengthen the equity base to support expansion and absorb shocks, akin to building stronger bones in the company's financial skeleton.

• Monitor Cash Flow Diligently: Maintain a close watch on cash inflows and outflows to avoid liquidity "symptoms" such as delayed receivables or increased payables, which can strain working capital.

• Plan for Growth Financing: As operations grow, evaluate options for external financing (e.g., bank loans, invoice financing) to fund working capital needs without over-leveraging.

• Maintain Compliance Rigor: Continue timely filing of accounts and confirmation statements to avoid penalties and preserve corporate health.

• Enhance Financial Reporting: Even as a micro-entity, consider internal management accounts that go beyond statutory minimums to detect early warning signs (e.g., profitability trends, cost control).

• Governance Oversight: Ensure directors regularly review financial performance and strategic risks to prevent "financial illnesses" such as mismanagement or poor decision-making.

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