STYX SECURITY LTD

Executive Summary

Styx Security Ltd is in a fragile financial position with negative net assets and working capital deficits as of its latest accounts. The company's ability to meet short-term liabilities and service debt is highly uncertain, warranting a decline in credit approval at this stage. Close monitoring of financial improvements and external funding will be critical before reconsidering credit facilities.

STYX SECURITY LTD - Analysis Report

Company Number: 13887758

Analysis Date: 2025-07-20 17:08 UTC

1. Credit Opinion: DECLINE
   Styx Security Ltd shows a weak financial position with net current liabilities of £5,785 and negative shareholders' funds of £4,723 as of April 2024. The company is loss-making or at least not generating sufficient resources to cover short-term obligations, which raises concerns about its ability to service any new credit facilities. The absence of employees and minimal fixed assets suggest limited operational scale and capacity to generate cash flow. Without evidence of an imminent turnaround or external funding injection, extending credit poses a high risk.

2. Financial Strength:
   The company is classified as micro and remains in an early stage, incorporated in 2022. The balance sheet deteriorated from a positive net asset position of £200 in 2023 to a negative net asset position of £4,723 in 2024. Current liabilities significantly exceed current assets, indicating poor liquidity and working capital management. Fixed assets are negligible (£1,062), and no retained earnings are evident. The capital structure is strained with negative equity, implying reliance on creditors or directors' funding.

3. Cash Flow Assessment:
   The company has limited cash or liquid assets (£3,042 current assets including cash and debtors) against substantially higher short-term liabilities (£8,827). Negative net current assets indicate working capital deficits, implying difficulty meeting short-term payments without additional financing or capital injection. No employees are recorded, which may reduce operating cash burn but also limits revenue generation capabilities. The absence of audit and detailed cash flow statements restricts deeper analysis but the current snapshot suggests liquidity stress.

4. Monitoring Points:

• Improvement in net current assets and shareholders’ funds.
• Evidence of revenue growth and profitability in subsequent filings.
• Changes in capital structure or external funding arrangements.
• Timely filing of accounts and confirmation statements to assess ongoing compliance and financial health.
• Director and creditor activity indicating financial distress (e.g., unpaid creditors, director loans).