RED DELTA SECURITY LTD

Executive Summary

RED DELTA SECURITY LTD demonstrates a solid financial base with improving net assets and good short-term liquidity, supported by timely compliance with filing requirements. However, the lack of detailed profitability data and the company’s very small scale warrant further investigation to confirm operational sustainability. Overall, the company presents a low risk profile based on available data but should be monitored for business performance trends.

RED DELTA SECURITY LTD - Analysis Report

Company Number: 13302279

Analysis Date: 2025-07-20 11:34 UTC

1. Risk Rating: LOW
   The company exhibits a strong net asset position and positive working capital, with no overdue filings or indications of regulatory non-compliance. As a micro-entity, it complies with relevant accounting standards and filing deadlines.

2. Key Concerns:

• Asset Concentration: Fixed assets appeared only in the latest year (£18,750), which may indicate recent capital expenditure; the nature and liquidity of these assets warrant review.
• Revenue and Profitability Data: Absence of detailed income statement data limits insight into profitability and operational cash flow sustainability.
• Small Scale and Limited Staff: With only 4-5 employees, operational scalability and resilience might be limited, which could impact long-term business stability.

3. Positive Indicators:

• Strong Net Current Assets: The company’s net current assets improved significantly to £17,821 as of 2024, indicating healthy short-term liquidity.
• Consistent Regulatory Compliance: All accounts and confirmation statements are filed on time, with no overdue filings or penalties.
• Sole Director Control: Clear control by a single director and shareholder (Mr Brian James Clark) ensures streamlined decision-making and accountability.

4. Due Diligence Notes:

• Obtain and review the company's profit and loss account or management accounts to assess revenue trends and profitability.
• Clarify the composition and liquidity of fixed assets acquired in 2024 and their impact on cash flow.
• Investigate the business model and client base to evaluate operational stability given the micro size and limited workforce.
• Confirm there are no contingent liabilities or off-balance sheet obligations that might impair financial health.
• Review any director conduct records or external references related to Mr Brian James Clark for governance assurance.