Company Number: 14114273

Analysis Date: 2025-07-20 16:49 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Sara Security Limited is an active micro-entity operating in the private security sector since May 2022. Its latest accounts show initial revenue generation (£44.5k total turnover) but a net loss (£6.1k). The company’s net liabilities position (-£1,661) and negative shareholders’ funds indicate early-stage financial stress. However, its current assets exceed current liabilities (net current assets positive at £1,004), suggesting short-term liquidity is manageable. Credit approval is conditional on ongoing monitoring of profitability improvement and liquidity management, given the loss and negative net asset base. The company’s small scale and limited operating history present some risk, but no adverse director conduct or overdue filings are noted.

2. Financial Strength:

• Fixed assets of £12,323 reflect investment in long-term resources, which is positive for operational capacity.
• Current assets (£4,570) slightly exceed short-term liabilities (£3,566), showing adequate working capital.
• However, significant long-term liabilities (£14,988) create a net liabilities position overall, negatively impacting solvency.
• The negative shareholders’ funds indicate accumulated losses or capital deficiency, highlighting limited financial buffer.
• The micro entity status limits disclosure but shows the company is in a formative financial stage with constrained equity.

3. Cash Flow Assessment:

• Positive net current assets imply the company can meet short-term obligations without immediate distress.
• Staff costs (£29,005) and other charges (£20,156) are high relative to turnover, contributing to the loss.
• Absence of cash flow statement data requires caution, but working capital appears tight, and ongoing losses may erode liquidity.
• The company should focus on improving operational cash flow and controlling expenses to maintain solvency.

4. Monitoring Points:

• Track profitability trends in subsequent accounts to confirm the company’s ability to move to positive net income.
• Monitor the reduction of long-term liabilities relative to assets to improve net asset position.
• Watch working capital and liquidity ratios to ensure ongoing ability to meet current liabilities.
• Confirm timely filing of future accounts and confirmation statements to avoid compliance risks.
• Review any changes in director appointments or PSC information that could affect governance.