S&M TOTAL SECURITY LTD

Executive Summary

S&M TOTAL SECURITY LTD is an active private limited company operating in the private security sector, classified as a micro-entity. Despite compliance with statutory filing requirements and some operational growth, its financial position is precarious, with minimal net assets and negative working capital indicating significant solvency and liquidity risks. Further detailed investigation into cash flows and business operations is recommended to assess the company’s sustainability.

S&M TOTAL SECURITY LTD - Analysis Report

Company Number: 13740612

Analysis Date: 2025-07-29 13:41 UTC

1. Risk Rating: HIGH
   The company's financial position reflects very limited net assets (only £10 at the latest year end) and a negative working capital position, indicating significant solvency and liquidity risk. The minimal equity base and persistent current liabilities exceeding current assets raise concerns about the company's ability to meet short-term obligations and sustain operations without additional financing.

2. Key Concerns:

• Negative Net Current Assets: Both years show current liabilities (£13,354 in 2023) exceeding current assets (£10,280), resulting in negative net current assets (-£3,074 if prepayments/creditors considered; reported net current assets figure appears inconsistent), suggesting cash flow pressures.
• Minimal Shareholders’ Funds: Shareholders’ funds are negligible (£10 in 2023), indicating the company has almost no financial buffer to absorb losses or fund growth.
• Rapid Decrease in Current Assets: Current assets declined sharply from £46,843 in 2022 to £10,280 in 2023, while liabilities also decreased but remain high. This volatility could indicate unstable cash management or business difficulties.

3. Positive Indicators:

• No Overdue Filings: The company is compliant with filing deadlines for both accounts and confirmation statements, reflecting good regulatory adherence.
• Active Website and Contact Details: The presence of an active website and clear contact information suggests operational legitimacy and transparency.
• Growing Workforce: Employee numbers increased from 1 to 3 in the latest year, which may indicate business expansion or increased operational activity.

4. Due Diligence Notes:

• Clarify Working Capital Figures: Investigate the apparent discrepancy between reported net current assets and balance sheet components, including the nature of prepayments and accruals.
• Cash Flow Analysis: Obtain detailed cash flow statements to assess liquidity trends and the company's ability to fund ongoing operations.
• Business Model Viability: Review contracts, client base, and revenue trends to evaluate operational sustainability given the limited asset base and small equity.
• Director Background and Related Party Transactions: Given sole control by Mr. Sebastian Kosinski, review any related party transactions or director loans that may impact financial stability.