Credit Analysis: RANCOM SECURITY LIMITED

1. Credit Opinion: DECLINE

This application must be declined. The company is currently in formal liquidation — a terminal insolvency process that precludes any credit facility. Even setting aside the liquidation status, the balance sheet is deeply insolvent with net liabilities of £239,512, net current liabilities of £217,754, and zero fixed assets. The company has no employees, no trading activity, and both its accounts and confirmation statement are overdue. No responsible lender would extend credit in these circumstances.

2. Financial Strength: CRITICAL / INSOLVENT

The balance sheet tells a clear story of failure:

Key observations: - Negative equity: Shareholders' funds are (£239,512) — the company owes more than it owns - Zero fixed assets: No property, equipment, or investments to provide collateral - Current ratio: 0.46x — for every £1 due within a year, only 46p is available to pay it - Share capital: Merely £8 called up, offering no meaningful equity cushion

Historical trajectory reveals catastrophic decline:

*The 2021-2022 "recovery" likely reflects asset transfers or intercompany restructurings rather than genuine trading recovery, given zero employees throughout.

3. Cash Flow Assessment: NON-FUNCTIONING

• Zero employees (both 2024 and 2023): The company is not operating as a trading entity
• No revenue or profit data: Micro-entity accounts provide no P&L, but zero staff confirms no operational activity
• Cash position unknown: No cash figure disclosed for 2024; last reported cash (2020) was £268,538
• Current liabilities of £404k: Significant obligations due within one year with no evident means of payment
• Working capital deficit of £217,754: The company cannot meet its short-term obligations from current assets

The company appears to be a non-trading shell with residual liabilities, not a functioning business generating cash flows.

4. Monitoring Points

While credit cannot be extended, the following should be noted for file closure and any exposure management:

1. Liquidation status: Confirm with the liquidator whether any assets remain to be realised and whether there are preferential or secured creditors ranking ahead
2. Connected party exposure: PSC register shows Oncall Group Security Ltd and Protect & Serve Home Security Ltd both claiming >75% ownership — investigate whether intercompany balances exist within the £404k current liabilities
3. Director conduct: Directors Michael Vry and Lee Hosking remain listed; review whether disqualification proceedings are being considered by the liquidator
4. Group structure: The overlapping >75% ownership claims by multiple entities suggest complex group restructuring that may warrant examination for transactions at undervalue or preferences
5. Overdue filings: Both accounts and confirmation statement are overdue — typical of companies entering liquidation, but may indicate administrative failure

Additional Risk Factors

• Previous name: Traded as "Direct Response Security Systems Limited" until 2014 — the rebrand coincides with the period before financial deterioration accelerated
• Micro-entity reporting: Minimal disclosure obscures the full picture; no P&L, no cash flow statement, no related-party transaction details
• Registered address: Mayfair, London — a virtual/ serviced office location typical of non-trading entities
• Sector: SIC 82990 (business support services) — vague classification that may mask the actual nature of activities