SAFE WORLD SECURITY LTD

Executive Summary

SAFE WORLD SECURITY LTD has made a significant financial turnaround in the latest year, moving from negative to positive net assets and improved liquidity. While the company’s financial health has stabilized, it remains fragile with a small asset base and limited cash reserves. Focused efforts on strengthening cash flow, managing working capital, and securing additional capital will be critical to sustaining this recovery and supporting future growth.

SAFE WORLD SECURITY LTD - Analysis Report

Company Number: 13454258

Analysis Date: 2025-07-29 12:11 UTC

Financial Health Assessment: SAFE WORLD SECURITY LTD (as of 30 June 2024)

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1. Financial Health Score: C

Explanation:
SAFE WORLD SECURITY LTD shows a recovery trajectory from prior financial distress but still operates at a fragile level typical of micro-entity startups. The recent positive net current assets and net equity indicate improvement, but the small asset base and limited financial reserves suggest vulnerability to shocks and limited operational scale.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Current Assets	3,405	Small but improved cash and receivables base
Current Liabilities	1,157	Reduced short-term obligations compared to prior years
Net Current Assets	2,248	Positive working capital, showing short-term liquidity recovery
Net Assets / Shareholders' Funds	2,248	Positive equity after prior years of negative net worth
Average Number of Employees	1	Very lean operation, typical for micro business

Additional Observations:

• The company transitioned from negative net assets in 2021-2023 to positive equity in 2024, indicating a stabilization and likely some capital injection or retained earnings generation.
• Current liabilities dropped significantly from £3,730 in 2023 to £1,157 in 2024, improving the company's short-term solvency.
• The net current assets turning positive is a vital sign of recovering "circulatory system"—meaning the company now appears capable of meeting short-term obligations without distress.

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3. Diagnosis

Symptoms Analysis:

• The company showed signs of financial distress in the initial years (2021-2023) with negative net assets and working capital deficits, symptoms analogous to "organ failure" in a financial body—indicating ongoing losses or capital erosion.
• In the latest year, key indicators reversed: net assets and working capital became positive. This suggests the "treatment" (capital injection, cost control, or revenue growth) has taken effect, and the company’s financial "pulse" is stronger.
• However, the very small asset base and minimal cash reserves highlight a precarious condition. The company operates with minimal financial buffer and is vulnerable to unexpected expenses or revenue shortfalls.
• Operating with a single employee and micro-entity status indicates limited operational scale, which may constrain growth and resilience.

Overall Condition:
SAFE WORLD SECURITY LTD is currently stable but delicate—akin to a recovering patient who requires ongoing care to prevent relapse. The turnaround is encouraging but the company remains susceptible to external shocks or operational missteps.

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4. Recommendations

To promote financial wellness and strengthen the company’s condition, consider the following:

• Build Cash Reserves: Increase liquid assets to create a healthy "financial immune system" able to withstand unexpected expenses or downturns.
• Monitor Working Capital: Maintain and improve positive net current assets to ensure smooth day-to-day operations without liquidity strain.
• Cost Control and Efficiency: Continue lean operation but evaluate if investment in key areas (marketing, technology, personnel) could drive sustainable revenue growth.
• Capital Injection: If possible, secure additional equity or long-term financing to increase net assets and reduce reliance on short-term liabilities.
• Regular Financial Reviews: Maintain close monitoring of key financial metrics to detect any early "symptoms" of distress and act promptly.
• Strategic Planning: Develop a clear growth plan aligned with industry conditions in private security, leveraging the director’s control and decision-making ability.
• Compliance and Timely Filings: Continue to file accounts and confirmation statements punctually to avoid penalties and maintain good standing.

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