STJOHN'S SECURITY LIAISONS (SSL) LIMITED

Executive Summary

STJOHN'S SECURITY LIAISONS (SSL) LIMITED has transitioned from financial distress to a cautiously healthier position with improved liquidity and solvency as of June 2024. However, the company remains small and lightly capitalised, requiring careful management of cash flow and equity to ensure long-term stability and growth. Proactive financial oversight and capital strengthening are recommended to safeguard its continuing operation.

STJOHN'S SECURITY LIAISONS (SSL) LIMITED - Analysis Report

Company Number: 13451229

Analysis Date: 2025-07-29 18:01 UTC

Financial Health Assessment for STJOHN'S SECURITY LIAISONS (SSL) LIMITED

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1. Financial Health Score: C+

Explanation:
The company shows signs of emerging stability after a period of distress. The positive turn in net current assets and net assets in the latest year reflects improved liquidity and solvency, but the overall scale and financial buffers remain modest. The score "C+" indicates cautious optimism—there is improvement, but risks remain due to the small scale of operations and limited capital base.

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2. Key Vital Signs

Metric	2024 Result	Interpretation
Cash at Bank	£2,316	Positive cash balance, indicating some liquidity.
Current Liabilities	£2,191	Current debts are slightly less than cash available.
Net Current Assets	£125	Positive working capital: a healthy sign of short-term financial health.
Net Assets (Equity)	£227	Positive equity suggests the company is solvent overall.
Fixed Assets (Tangible)	£102	Modest fixed asset base, reflecting small scale operations.
Share Capital	£100	Very small capital base, typical for a micro/small company.
Employee Count	1 (Director)	Very small workforce indicating a micro-business.
Turnover & Profitability	Not disclosed	Unable to assess profitability due to limited data.

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3. Diagnosis: Financial Health and Symptoms Analysis

• Liquidity ("healthy cash flow"): The company ended the latest financial year with a positive cash balance (£2,316) and current liabilities just below this amount (£2,191), resulting in a small but positive net current asset position (£125). This suggests the company can meet its short-term obligations, a vital "heartbeat" of financial health.

• Solvency ("strength of the financial skeleton"): Net assets moved from a deficit (-£231) in 2023 to a positive £227 in 2024. This turnaround is a key "recovery sign," indicating the company has strengthened its financial foundation, moving from potential insolvency to a stable equity position.

• Asset Management: Tangible fixed assets have decreased due to depreciation (from £307 to £102), which is normal for a small company with limited capital expenditure. The company does not appear to have invested heavily in long-term assets, consistent with its small scale.

• Capital Structure: With only £100 in share capital and retained earnings of £127, the company is thinly capitalised. This limited capital buffer means the company is vulnerable to financial stress or unexpected costs.

• Profitability and Growth: The absence of detailed profit and loss data restricts insight into operational profitability and revenue growth. The director's report notes small company exemptions and no audit, which is typical but limits transparency.

• Operational Scale: The company employs only one person (the director), suggesting a very small operation. This limits business scale but also keeps overheads low.

• Going Concern: The director confirms the financial statements are prepared on a going concern basis, suggesting confidence in the company's ability to continue operating.

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4. Recommendations: Steps to Improve Financial Wellness

1. Enhance Cash Reserves: Build a stronger cash buffer to protect against unforeseen expenses or delays in receivables. Healthy cash flow is the lifeblood of small businesses.

2. Increase Equity Capital: Consider injecting additional capital or retained earnings to build a more robust equity base. This will strengthen solvency and improve financial resilience.

3. Improve Profitability Transparency: Even though the company is exempt from audit, preparing a simple profit and loss summary will help the director understand operational performance and identify cost-saving or revenue-enhancing opportunities.

4. Manage Liabilities Prudently: Keep current liabilities under close control to maintain positive working capital. Avoid excessive short-term borrowing that could strain liquidity.

5. Plan for Growth: Explore opportunities to increase turnover responsibly without overextending resources. Even small incremental growth can improve financial health.

6. Regular Financial Reviews: Schedule periodic financial health checks to monitor vital signs (cash flow, net assets) and adjust strategy proactively.

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Medical Analogy Summary

STJOHN'S SECURITY LIAISONS (SSL) LIMITED has shown promising signs of recovery from previous financial weakness, akin to a patient emerging from a period of illness with stabilised vital signs. The positive cash position and net assets are like a heartbeat and stable blood pressure signaling life, but the business remains vulnerable due to its small capital base and limited scale, much like a patient with a small reserve of strength. Strengthening liquidity and equity will build resilience, helping the company to thrive and avoid relapse.

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