TORSTEN SECURITY SERVICES LTD

Executive Summary

TORSTEN SECURITY SERVICES LTD shows basic financial stability typical of a micro-entity in its first year, with positive but slim working capital and modest equity. The company currently exhibits no distress symptoms but should prioritize improving liquidity and building financial buffers to safeguard against future operational risks. Continued prudent financial management will be key to sustaining growth and resilience.

TORSTEN SECURITY SERVICES LTD - Analysis Report

Company Number: 15393037

Analysis Date: 2025-07-20 13:52 UTC

Financial Health Assessment: TORSTEN SECURITY SERVICES LTD

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1. Financial Health Score: Grade C

Explanation:
TORSTEN SECURITY SERVICES LTD is a newly incorporated micro-entity with a modest financial footprint. The company demonstrates a positive net current asset position, reflecting a basic buffer of liquidity, but the scale is minimal. Given the limited financial history and the early stage of operations, the company’s financial health is cautiously stable but vulnerable due to the small asset base and narrow margin between current assets and liabilities.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	14,347	Indicates available short-term resources such as cash and receivables.
Current Liabilities	13,608	Obligations payable within one year, close in value to current assets.
Net Current Assets	1,082	Working capital, positive but very slim, signaling limited operational cushion.
Net Assets (Shareholders’ Funds)	1,082	Equity invested by owner; low but positive, typical for a micro start-up.
Number of Employees	5	Small workforce, consistent with micro-entity scale.

Interpretation:
The company’s liquidity position is “healthy” in that current assets exceed liabilities, but the margin is thin—similar to a patient with stable but borderline vital signs. The net assets reflect initial capital, likely from owner investment, with no indication yet of accumulated profits or reserves.

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3. Diagnosis: Business Financial Health

TORSTEN SECURITY SERVICES LTD is in the early stages of its lifecycle. The financial statements indicate a business that is operational with a small team and minimal financial complexity. The positive working capital suggests the company can meet short-term obligations, but the narrow gap between assets and liabilities signals sensitivity to cash flow disruptions or unexpected expenses.

There are no signs of financial distress (“symptoms”) such as negative net assets, overdue filings, or liquidity shortages. However, the company’s financial “immune system” is still developing; with limited capital and reserves, it remains vulnerable if revenues or cash inflows falter.

The director, who is also the sole significant controller, provides clear governance and control, which can be a strength for swift decision-making but also concentrates risk.

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4. Recommendations: Path to Improved Financial Wellness

• Strengthen Liquidity: Aim to increase net current assets by building cash reserves and managing payables carefully. Healthy cash flow is the foundation of resilience.
• Monitor Cash Flow Closely: Early-stage companies must track inflows and outflows meticulously to avoid “cash flow shock” which can rapidly lead to distress.
• Build Financial Buffers: Retain earnings to create a reserve against future operational fluctuations or unexpected expenses.
• Plan for Growth Prudently: As the company scales beyond micro-entity status, consider securing additional capital or credit lines to support expansion without endangering liquidity.
• Maintain Compliance and Governance: Continue timely filing of accounts and confirmation statements to avoid penalties and maintain good standing.
• Consider Insurance and Risk Management: Protect business assets and operations against liabilities, especially given the nature of private security activities.

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