SAM SECURITY SYSTEMS LTD

Executive Summary

SAM SECURITY SYSTEMS LTD presents a sound credit profile with growing net assets, strong working capital, and no sign of financial distress. The company’s micro status and stable control structure support a low-risk credit decision for modest lending exposure. Continued monitoring of liquidity and sector conditions is recommended to maintain credit quality.

SAM SECURITY SYSTEMS LTD - Analysis Report

Company Number: 13658830

Analysis Date: 2025-07-20 16:26 UTC

1. Credit Opinion: APPROVE
   SAM SECURITY SYSTEMS LTD demonstrates a stable financial foundation with consistent net asset growth over the last three years. The company's micro entity status and small size limit the complexity of financial data, but the positive working capital and retained equity indicate sound financial stewardship by management. No overdue filings or signs of distress are present. The single director with significant control appears to maintain adequate oversight. Given the firm’s niche in security systems services and absence of liabilities beyond current, the credit risk is low for typical lending amounts aligned with micro/small enterprises.

2. Financial Strength:
   The balance sheet shows net assets increasing from £8,810 (2021) to £10,048 (2024), reflecting gradual equity growth. Fixed assets are minimal (£890 in 2024), consistent with a service-oriented business. Current assets exceed current liabilities by £10,593, yielding strong net current assets and indicating good short-term solvency. Accruals and deferred income are modest and stable. The company’s equity is fully shareholder funded without long-term debt, reducing financial leverage risk.

3. Cash Flow Assessment:
   Current assets primarily comprise cash and receivables, supporting liquidity to meet short-term obligations (£6,208 current liabilities). Net current assets above £10k suggest sufficient working capital buffer. Absence of debt interest or long-term borrowing reduces cash flow pressure. The company’s low employee count (1) and micro scale suggest manageable operating expenses. While detailed cash flow statement is unavailable, balance sheet indicators suggest adequate liquidity and cash flow to service debt, assuming stable revenue.

4. Monitoring Points:

• Maintain vigilance on receivables aging and cash conversion cycle to avoid liquidity squeeze.
• Track any significant changes in current liabilities or deferred income that could impact short-term solvency.
• Monitor revenue trends in security services sector to anticipate cyclical risks or client concentration issues.
• Observe director’s ongoing involvement and any changes in ownership/control structure that could affect governance.
• Ensure timely filing of accounts and confirmation statements to avoid regulatory penalties.