TCC SECURITY LTD

Executive Summary

TCC Security Ltd is a small private security and electrical installation company showing improved net asset position but maintaining a tight liquidity profile with low cash reserves and ongoing finance lease liabilities. The company is compliant with statutory filings and operates under a single director, which may pose operational concentration risks. Further due diligence on cash flow, debtor management, and lease commitments is advisable to fully gauge financial stability and operational resilience.

TCC SECURITY LTD - Analysis Report

Company Number: 13241042

Analysis Date: 2025-07-20 17:38 UTC

1. Risk Rating: MEDIUM
   TCC Security Ltd exhibits modest net assets and positive net current assets in the latest financial year, indicating it can currently meet short-term obligations. However, the company has relatively low cash balances and significant finance lease liabilities, which may pressure liquidity. The limited scale and single director structure also suggest operational risks.

2. Key Concerns:

• Liquidity Position: Cash reserves are minimal (£1,976), with current liabilities nearly equal to current assets. Reliance on debtors and tight working capital could strain cash flow, especially if collections slow.
• Long-Term Debt Exposure: Significant obligations under finance leases (£9,742) remain, though reduced from prior year, potentially impacting future cash outflows.
• Operational Scale and Dependency: The company employs only one person (the director), which may constrain operational capacity and continuity risk. A single director also concentrates control and increases dependency risk.

3. Positive Indicators:

• Improved Net Assets: Shareholders’ funds increased substantially to £8,456 from £882 in the prior year, indicating some recovery or retained profitability.
• Timely Compliance: The company’s accounts and confirmation statements are up to date with no overdue filings, reducing regulatory risk.
• Niche Market Position: Operating in security systems and electrical installation with an active website presence suggests the company has established market engagement and service offerings.

4. Due Diligence Notes:

• Review detailed cash flow statements and aging of trade debtors to assess collection efficiency and liquidity risk.
• Evaluate the terms and future commitments related to finance lease obligations to understand cash flow impact.
• Investigate the company’s revenue trends, client concentration, and contracts to assess operational sustainability.
• Confirm the absence of director disqualification or regulatory sanctions given the single director structure.
• Assess potential reliance on the director for key operational functions and contingency arrangements.