SITEGUARD SECURITY LTD

Executive Summary

SITEGUARD SECURITY LTD shows a strong financial foundation characterized by growing cash reserves and equity, indicating healthy operational performance and financial management. While the company has taken on some medium-term liabilities, these are currently manageable and support its growth trajectory. Continued focus on cash flow, liability management, and strategic planning will be essential to maintaining financial wellness as the business expands.

SITEGUARD SECURITY LTD - Analysis Report

Company Number: 14129725

Analysis Date: 2025-07-29 12:26 UTC

Financial Health Assessment of SITEGUARD SECURITY LTD as at 31 May 2024

---

1. Financial Health Score: B

Explanation:
SITEGUARD SECURITY LTD demonstrates a sound financial position for a young company in its second full year of trading. Key indicators such as positive net current assets, growing shareholders’ funds, and increasing cash reserves reflect healthy financial "vital signs." The presence of medium-term liabilities does temper the overall score slightly, but the company’s growing equity and cash position indicate generally good financial wellness.

---

2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Cash at bank	30,307	7,522	Healthy and improving liquidity; a growing cash "pulse" supporting operations and flexibility.
Current Liabilities	5,505	1,448	Increased short-term obligations but manageable relative to assets.
Net Current Assets (Working Capital)	24,802	6,074	Positive and strengthening working capital indicates good short-term financial resilience.
Creditors > 1 year (Long-term liabilities)	12,538	0	New medium-term liabilities require monitoring but are not excessive for growth investments.
Net Assets (Equity)	14,182	7,273	Equity has nearly doubled, showing retained earnings and capital growth; sign of "healthy growth."
Tangible Fixed Assets	1,918	1,199	Investment in assets (likely equipment) increasing; supports operational capacity.
Average Number of Employees	1	1	Small workforce, typical for micro/small business; implies lean operations.

---

3. Diagnosis: What the Financial Data Reveals About Business Health

SITEGUARD SECURITY LTD is in a phase of early growth and consolidation. The company shows "healthy cash flow" with a significant increase in cash reserves, a vital sign of operational strength and good cash management. Positive working capital confirms the company can meet its short-term obligations comfortably, avoiding liquidity "symptoms of distress" such as cash crunch or overdue payables.

The increase in creditors due after one year indicates the company has taken on medium-term liabilities, possibly to finance growth or capital expenditures. While this introduces some financial leverage, the level is modest relative to net assets, implying manageable financial risk.

Net assets have nearly doubled compared to the prior year, reflecting accumulated retained earnings and growth in equity, which is a key indicator of business "vitality." The company’s asset base is small but growing, consistent with its security activities requiring equipment. The stable headcount suggests efficient use of human resources.

The directorship change in mid-2024, with the new director assuming control, coincides with the increased equity and liabilities, suggesting restructuring or recapitalization which may strengthen the company's governance and strategic direction.

No audit was required under the small companies regime, and the accounts comply with FRS 102 Section 1A, indicating regulatory compliance and reliable financial reporting.

---

4. Recommendations: Specific Actions to Improve Financial Wellness

• Monitor Long-term Liabilities: Keep close watch on the medium-term creditors (£12,538) to ensure timely servicing and avoid refinancing risks. Establish a clear repayment plan and maintain strong cash reserves.
• Enhance Revenue and Profitability Tracking: While balance sheet strength is positive, detailed profit and loss data is limited. Implement robust financial controls and regular P&L analysis to ensure sustainable profit margins and business scalability.
• Cash Flow Management: Continue to nurture the strong cash position with prudent expense control and timely invoicing to avoid cash flow "arrhythmias."
• Growth Planning: Consider gradual workforce expansion aligned with business volume growth to avoid operational bottlenecks.
• Governance and Controls: Leverage the new director’s leadership to strengthen internal controls, financial planning, and compliance frameworks.
• Financial Forecasting: Develop medium-term financial forecasts to anticipate funding needs and investment opportunities, reducing surprises.
• Stakeholder Communication: Maintain transparent communication with stakeholders, including the sole shareholder, about financial performance and strategic plans.

---

Summary

SITEGUARD SECURITY LTD exhibits robust financial health with increasing liquidity, solid working capital, and growing equity, reflecting a healthy financial "heartbeat" for a young security services company. The emergence of medium-term liabilities introduces some caution, but overall, the company’s balance sheet strength and cash position provide a positive prognosis for sustainable growth under effective management.