Company Number: 14809333

Analysis Date: 2025-07-29 20:50 UTC

1. Risk Rating: MEDIUM
   Justification: SMART AV & SECURITY GROUP LTD is a very recently incorporated micro-entity with minimal financial history. The latest accounts show a positive net asset position but marginal net current assets and a very small equity base, indicating limited financial buffer. The company is active and compliant with filings, but the thin capitalisation and modest asset base introduce some solvency and liquidity risk.

2. Key Concerns:

• Thin Net Assets and Working Capital: Net assets stand at only £327 with net current assets negative before accruals, suggesting limited financial resilience to absorb adverse events or short-term liquidity pressures.
• Limited Operating History and Scale: Incorporated in April 2023 with only one employee and micro-entity status, there is scant financial or operational track record to assess sustainability or growth prospects.
• Accruals and Deferred Income Exceed Net Assets: Accruals of £3,240 exceed net assets, which may indicate timing differences or unearned income that could impact cash flows.

3. Positive Indicators:

• Compliance and Timely Filings: Accounts and confirmation statement are up to date with no overdue filings, reflecting good governance and regulatory compliance.
• Clear Ownership and Control: Single director and 75-100% shareholder (Xxxxxx Xxxxxxxxname shown to subscribers) simplifies governance and decision-making.
• Positive Total Assets Less Current Liabilities: Despite small scale, the company reports £3,567 in total assets less current liabilities, indicating a positive basic solvency position.

4. Due Diligence Notes:

• Review detailed notes behind accruals and deferred income to understand nature and timing of these liabilities.
• Obtain management accounts or cash flow forecasts to assess ongoing liquidity beyond year-end snapshot.
• Investigate business model, contracts, and pipeline to evaluate operational sustainability given the limited workforce and asset base.
• Confirm any contingent liabilities or off-balance sheet risks not reflected in micro-entity accounts.