I-SEC UK LIMITED

Credit Opinion: DECLINE

I-SEC UK Limited is balance-sheet insolvent, with negative net assets of £1.96m as at 31 December 2024. The financial statements are explicitly prepared on a non-going concern basis, and the only material liability is £1.96m of creditors due after one year, likely intercompany funding from the Dutch parent, I-Sec International Security B.V. There is no evidence of revenue, profitability, cash generation, or asset cover to support new borrowing. The overdue confirmation statement is an additional compliance concern. A conventional unsecured credit facility is not supportable on the current financial position.

Financial Strength

• Negative net assets: £1,955,719 as at 31 December 2024, unchanged from 2023.
• Negative reserves: Profit and loss account deficit of £1,966,039.
• Thin capitalisation: Called up share capital is only £100, with share premium of £10,220; the company is deeply dependent on external/parent funding.
• No asset cover: No fixed assets, current assets, or debtors are presented in the abbreviated balance sheet. The £1.96m liability has no visible offsetting asset base.
• Going concern: The accounts state the company is not considered a going concern and have been prepared on a basis other than going concern. Although the director refers to continued support from the parent, the accounts still conclude non-going concern, which seriously undermines reliance on that support.

Cash Flow Assessment

• No cash flow statement, profit and loss account, or working capital breakdown has been filed.
• The company has no disclosed cash or liquid resources to meet obligations.
• The £1.96m creditor position is due after more than one year, suggesting a historical intercompany loan, but there is no evidence of the company’s ability to service new debt.
• Given the negative equity and non-going concern basis, the recoverability of any new lending is doubtful.

Monitoring Points

If the bank were ever to consider exposure — for example, with a full parent guarantee and subordination of the existing intercompany loan — the following would need close monitoring:

• Confirmation statement compliance; the current filing is shown as overdue.
• Up-to-date management accounts and evidence of trading activity.
• Continued support and subordination from I-Sec International Security B.V.
• Group financial health and any change in ownership or control.
• Any movement in the £1.96m intercompany creditor position.
• Ongoing compliance with filing requirements and any future changes to the going concern status.