Company Number: 14501067

Analysis Date: 2025-07-29 13:30 UTC

1. Credit Opinion:
   CONDITIONAL APPROVAL. Warrior Security Services Ltd is a recently incorporated small private limited company operating in private security, showing modest net assets and positive working capital. While the company is active and compliant with filing deadlines, its financial scale is very small, with low tangible fixed assets and minimal employee base (zero reported). The net current assets improved slightly year on year but remain modest (£4,853 in 2024 vs £2,422 in 2023). Debtors are significant relative to cash, raising some concerns about cash conversion efficiency. The director change in late 2024 and concentration of ownership/control in one individual may pose governance risks. Overall, credit facilities could be extended with tight monitoring and possibly requiring personal guarantees or short-term limits until further trading history and improved liquidity is demonstrated.

2. Financial Strength:
   The balance sheet shows a small but positive equity base (£5,753 in 2024), with net assets increasing modestly from the prior year. Tangible fixed assets are minimal (£900) and depreciate on a straight-line basis, reflecting limited capital investment. Current liabilities have decreased substantially from £63,027 to £30,305, improving short-term solvency. The company maintains net current assets of £4,853, indicating a working capital buffer but at a low absolute level. Shareholder funds are low, consistent with a micro-entity profile. No long-term debt is reported, but director loans of £7,672 exist, which may be informal and need to be considered in credit risk.

3. Cash Flow Assessment:
   Cash reserves declined sharply from £30,657 in 2023 to £10,047 in 2024, which could suggest cash outflows exceeding inflows or timing differences in debtor collections. Debtors remain high at £25,111 relative to cash, indicating potential collection risk or delayed payments from clients. The company’s ability to meet short-term obligations relies heavily on converting receivables to cash promptly. Current liabilities mainly include VAT and trade creditors, with director loans also present. The absence of employees suggests limited payroll burden but also potentially limited operational scale. Cash flow resilience appears weak at present and should be closely monitored.

4. Monitoring Points:

• Debtor collection periods and ageing should be reviewed regularly to ensure cash inflows support working capital needs.
• Changes in director or ownership structure, especially given recent director turnover and significant owner control, should be monitored for governance continuity.
• Cash balances and liquidity ratios should be tracked to detect any emerging cash flow stress.
• Trade creditor payments and VAT liabilities should be scrutinised to avoid late payment penalties or enforcement action.
• Growth in profitability and retained earnings is essential to build a stronger equity base and reduce reliance on director loans.