Company Number: 13820992

Analysis Date: 2025-07-20 18:24 UTC

1. Credit Opinion: CONDITIONAL APPROVAL

Securise Limited is an active private limited company incorporated in December 2021, operating in the electrical installation sector (SIC 43210). The company shows modest net assets (£2,542 as of 31 Dec 2023) and narrowly positive net current assets (£417), indicating limited but positive working capital. However, the cash position has deteriorated to zero from £9,242 the prior year, replaced by increased debtors (£11,509). Current liabilities almost doubled to £11,092 in 2023 from £5,552 in 2022, largely due to corporation tax and trade creditors. The company remains a one-person operation, with the sole director also being the majority shareholder controlling 75-100% ownership and votes.

The financial profile suggests a small company with constrained liquidity and tight working capital, relying heavily on receivables to fund current liabilities. The absence of cash reserves raises concerns on short-term liquidity and ability to meet immediate obligations without delay. The increase in liabilities and decrease in net assets signals some financial pressure developing in 2023. However, the company has no overdue filings and appears compliant and well-managed by an experienced director.

Approval is recommended conditionally, subject to monitoring liquidity improvements and debtor collection. Lending limits should be conservative given the limited tangible fixed assets (£2,125 motor vehicle) and absence of cash. The company’s ability to generate sufficient cash flow to service new debt needs verification, ideally through projected cash flow statements and debtor aging analysis.

2. Financial Strength:

• Shareholders funds decreased from £3,690 in 2022 to £2,542 in 2023, indicating erosion of equity likely from operating losses or dividends (£20,000 paid in 2023).
• Fixed assets introduced in 2023 (£2,125 motor vehicle) provide some collateral but are minimal.
• Net current assets shrank significantly from £3,690 to £417, reflecting higher liabilities and stagnant current assets.
• The balance sheet remains small and vulnerable to cash flow shocks.

3. Cash Flow Assessment:

• Cash reserves dropped from £9,242 in 2022 to zero in 2023.
• Debtors rose to £11,509, implying funds are tied up in receivables.
• Current liabilities nearly doubled, primarily corporation tax and trade creditors.
• Net working capital is positive but marginal, suggesting tight liquidity.
• The company pays dividends despite limited cash, which could strain liquidity.

4. Monitoring Points:

• Debtor collection efficiency and aging profiles.
• Cash flow forecasts and actual cash generation versus liabilities.
• Ability to manage corporation tax obligations timely.
• Impact of dividend payments on liquidity.
• Any changes in creditor terms or new borrowing.
• Updates on turnover and profitability trends beyond 2023.
• Director’s ongoing commitment and financial support.