SECURENETT SECURITY SYSTEMS LTD

Risk Rating: HIGH The company is currently in Liquidation, which represents the highest level of risk for any investment or credit exposure. The financial position revealed in the last filed accounts (March 2020) showed severe insolvency, with net liabilities of nearly £9.77 million. The going concern assumptions made by the director in 2020 have clearly not been sustained, resulting in the formal closure of the business.

Key Concerns: * Formal Insolvency: The company's status is "Liquidation," meaning the business has failed and is under the control of a liquidator. Any outstanding debts or investments are at extreme risk of total loss. * Severe Balance Sheet Deficit: As of 31 March 2020, the company reported net liabilities of £9,769,895 and net current liabilities of £1,560,721. The accumulated losses in the profit and loss account exceeded £10 million, indicating long-term, structural unprofitability. * Filing Delinquency: Both the annual accounts (due Dec 2021) and the confirmation statement (due Sep 2021) are overdue. This creates an information blackout regarding the specific events that triggered the liquidation between the last reporting period and the present day.

Positive Indicators: * Long Operational History: The company was incorporated in 1995, indicating it successfully operated for nearly 25 years before encountering its current terminal difficulties. * Essential Sector Classification: In the 2020 accounts, the director noted that the security sector was designated as an essential business during the COVID-19 pandemic, which initially allowed operations to continue and provided a degree of revenue resilience. * Group Support (Historical): The 2020 accounts explicitly stated that "parent companies and its directors have confirmed that it will continue to support the company," suggesting there was a willingness from the wider group to back the entity, even if this support ultimately proved insufficient to prevent liquidation.

Due Diligence Notes: * Liquidation Details: It is critical to obtain the liquidator's documentation to identify the type of liquidation (e.g., Compulsory or Creditors' Voluntary), the estimated recovery rates for creditors, and the timeline for the process. * Director Conduct: Given the massive deficit and subsequent failure, the conduct of Director Mark Colin Bennett should be reviewed to ensure there are no insolvency disqualification orders or investigations by the Insolvency Service. * Intercompany Balances: The 2020 balance sheet shows £334,000 in fixed asset investments and over £8.5 million in long-term creditors. Further investigation is required to determine how much of this debt is intra-group versus owed to external creditors, as this will dictate the priority and recovery of funds. * Parent Company Status: The accounts reference "parent companies." The status and financial health of the parent group should be investigated, as the failure of this subsidiary may indicate broader financial distress within the group.